Inventory Management I.

The concept of stock Denotes stock "of all goods and services involved in the operating cycle of the company to be: - sold as is, or completion of a process or pending, or - consume d first use "PCG 1982. A property purchased or produced for sale is listed in in ventory. Account No. 31 32 33 34 35 36 37 Account Name Commodities (supplies) Ot her supplies in-process goods in-process service goods stocks stocks from capita l goods stocks II. The perpetual inventory This is according to the PCG in 1982, an "organization of inventory accounts whi ch, by recording the movements, means that information should be constant during the year, the existing numerical quantity and values." III. Inventory valuation • Entries in stock (good reception) are valued at historical cost. Raw materials , supplies and other goods are valued at cost (purchase price + costs of purchas e). Finished goods and work in progress are valued at production cost (purchase cost of materials used + loads of production) provided by management accounting. 1 • Outgoing stock (Good output) must be evaluated by one of two techniques proposed by GCP (art.322-3) - the method of weighted average unit cost of end of period (CUMP) can manage the stock without having to identify consignments which are ta ken out property. - The method of first in, first out (LIFO or FIFO English): we consider that the items out of stock are primarily older. Sheet: Valuing stock withdrawals There are other methods: the last in, first out (FIFO or LIFO) and the method of replacing first-out, came next (NIFO). • The final stock value in financial accounting corresponds to the actual quantiti es (physical inventory) is multiplied by the CUMP the month, either by the value of the last items returned. This is the value of the stock, which figured in th e balance sheet. IV. Inventory Management The value of stocks in a stock of a company is often very high. A stock mismanag ed can lead to difficulties sometimes fatal to the company. That is why it is ne cessary to rotate rapidly (rotation) without risking a rupture of stock. If stoc ks are composed of a wide variety of products, it is necessary to limit the mana gement or give priority to certain categories of items (those with the most impo rtant movements or those that carry out much of the sales business). For this we use two methods: • Method 20/80 • The ABC method Factsheet: The 20/80 method and ABC method Managing inventory has also: Time management: managing time, avoid waste, antici pate obsolescence and reduce costs. Inventory management is a significant cost s ometimes because stocks have a fee: 2 • • At the time of their formation (preparation of control, launch control, order tr acking, receipt and control of items, storage items in the store). At the time o f their detention (rent of premises and charges designed to accommodate items, s

pecial facilities, babysitting costs, obsolescence, insurance against theft and fire). Since the early 1980s, after several years of use in Japan, the method of "just in time" has appeared in France in industrial enterprises. This is simply to mak e the products just in time to be sold (there is no intermediate storage). This method is best known under the name "zero stock" calls into question traditional approaches to inventory management based on an optimal number of orders (Wilson method). Ideally this method means that we work with the order and the customer must bear a waiting time equal to the time of manufacture or delivery. Besides the fact that the "right time" requires continuous adaptability of the organizat ion of the company (including a very flexible working hours) it completely chang es the traditional relationships with suppliers of goods or services. Indeed, th is method of "lean" has the following consequences: • Strict compliance with del ivery schedules,€• A higher number of orders (smaller in size), • Choice of prov iders geographically somewhat remote • Select means of rapid transportation and flexible. In fact, the provider of an enterprise that uses the "just in time" ca n not itself adopt this method of inventory management because it could not meet his client. This is tantamount to transferring to the supplier the cost of stor age which should normally be borne by the customer. This method is the subject o f criticism from experts in the organization: • It increases the sensitivity of the company to changes in economic conditions: to offset a sharp decline in acti vity is increased by temporary staff to avoid Partial redundancy, increasing soc ial instability; • It can be a dangerous system for SMEs because they are less s uitable than larger firms to take on additional generation capacity. The SMEs ca n not easily negotiate with their suppliers delivery terms tailored to the metho d of "just in time" because the amount of orders is not comparable to that of la rge organizations. That is why they often resort to more traditional methods. Th e management of quality (ISO: International Standardization Organization, www.is o.ch). 3 V. Inventory management with Ciel Gestion Commerciale Menu: Basics - Control: Articles We may decide or not to manage the stock of each item by checking the box or not stock management. The actual stock is a numeric field that we can learn that th e creation of an article. The stock is automatically calculated by the program, based on inputs / outputs. The theoretical stock corresponds to the actual stock quantity in less quantity in "Customer Orders" more controlled "Purchase Orders ". Areas "In cde client" and "cde In prov. "Are not accessible. They are automat ically calculated based on purchase orders and / or sales, not remaindered. The stock is at a minimum in order to edit information, including statements concern ing the replenishment of inventory (list of items the actual stock is below this minimum inventory) to avoid out of stock. The stock is up information to allow the publishing of list of "overstock" (the actual stock exceeds the maximum stoc k) because the excess inventory represents a cost to the company. 4 5