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Topic: Inventory Control
Topic: Inventory Control
Inventory Control
Group MembersShalini Catherine Panna Rajnikant George Sitakanta Behera Ajay Kongari Mahendra Prasad
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All the materials , parts, suppliers, expenses and in process or finished products recorded on the books by an organization and kept in its stocks, warehouses or plant for some period of time.
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Inventory control is the technique of maintaining the size of the inventory at some desired level keeping in view the best economic interest of an organization.
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Type of Inventory
(1)
Raw materials To reap the price advantage available on seasonal raw materials.
When the components are bought rather than made. They are disposal of in bulk. Lying in stock rooms and waiting dispatches
XIDAS, INVENTORY CONTROL
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Protection
against fluctuations in demand; Better use of men, machines and material; Protection against fluctuations in output; Control of stock volume; Control of stock distribution.
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Planning
the inventories; Procurement of inventories; Receiving and inspection of inventories; Storing and issuing the inventories; Recording the receipt and issues of inventories. Physical verification of inventories; Follow-up function ; Material standardization and substitution.
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Executive decide two basic issues while dealing with inventories; (a) How much of an item to order when the inventory of that item is to be replenished. (b) When to replenish the inventory of that item. By definition, inventory facilitate production or satisfy customer demands. Inventory system is a set of policies and controls which monitors and determines the levels of inventory. Inventory conventionally include raw materials, work-in-progress, components parts, supplies and finished goods. Operations is a transformation process in which the inputs are raw materials and output is the finished goods.
Suppliers
Raw materials
Production Work-in-progress
Finished good
customers.
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Supply rate
Inventory level
Demand rate
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Deciding
the maximum- minimum limits of inventory; Determination of Reorder point; Determination of reorder quantity; Perpetual inventory control; ABC analysis; Method of control through turn over.
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Quantity
of inventory above which should not be allowed to be kept. This quantity is fixed keeping in view the disadvantages of overstocking; Factors to be considered: Amount of capital available. Godown space available. Possibility of loss.
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Cost
of maintaining stores; Likely fluctuation in prices; Seasonal nature of supply of material; Restriction imposed by Govt.; Possibility of change in fashion and habit.
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This
represents the quantity below which stocks should not be allowed to fall . The level is fixed for all items of stores and the following factors are taken into account: 1.Lead time2. Rate of consumption of the material during the lead time.
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It
is the point at which if stock of the material in store approaches, the store keeper should initiate the purchase requisition for fresh supply of material. This level is fixed some where between maximum and minimum level.
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It
is also known as standard order quantity , optimum quantity or economic lot size. By definition economic order quantity that size of order for which the total cost is minimum.
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The
EOQ ={2RCp/Ch} Where , R= Annual quantity to be used in units. Cp=Cost of placing an Order. Ch= cost of holding one unit for one year.
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Item A
Quality Costlier
Checking Regular system to see that there is no overstocking as well as that there is no danger of production being interrupted for unwanted material. Position being viewed in each month Order in large quantity so that cost can be avoided
B C
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It is a method of recording stores balances after every receipt and issue, to facilitate regular checking and obviate closing down for stock taking.
-Wheldon
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Stores
ledger, stores control, cards or bin cards are properly maintained ; Quantity balance store shown in the store ledger; stock control and bin cards are reconciled; Exploring the cause of discrepancies if any physical balances and book balances.
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Product Month Year 5 Physical Inventory 6 Variation Today 7 Variation This Month
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 TOTALS
Day
2 Deliveries
3 Meter Sales
4 Inventory Should Be
Balance sheet is were information is calculated to determine losses and gains from daily sales. This is a very important part of fuel management it will give you important records of sales (this is inventory control).
Daily Readings
Pump 1
Pump 2
Pump 3
Pump 4 Sales
Tank 2
Inventroy Water Dip litres cm.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Day
This is were information collected from meter totals and tank dips are added and recorded.
Monthly Summary
Product Storage Capacity Total Variation Sales for Month Product Storage Capacity Total Variation % Loss Sales for Month Product Storage Capacity Total Variation % Loss Sales for Month
Month
% Loss
This is were we record our calculated losses and gains for every individual month. This sheet is used for the years sales report. Will give you sales of individual months. Record keeping is a important method of tracking your inventory.
It means how many times a companys inventory is sold and replaced (finished product)
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The value of material consumed during a period Average value of inventory during that period
High ratio = fast moving stock
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Thank you
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