Chinese Pharmaceuticals (HK) Limited:

Effective Forecasting for Optimal Inventory

Management

Abda Alif Prasidya – 29120182

1. Inventory Policy Proposed

• If the inventory level is drop to safety stock level, the reorder is needed right
away to the suppliers by using purchase order.
• In order to meet user needs Manager must predict the maximum inventory.
• Because it is for purchase purposes, some goods should be put in the stores.

2. Stock Order (Fixed-Quantity Order with Safety Stock)

• The demand in the peak season should be predicted. And if the stock quantity
meets the minimum inventory the purchasing team must as soon as possible
order the goods from the supplier.
• The inventory department must match each purchase order form from the
purchasing department for items received with orders after the goods are
shipped.

3. Receiving Goods
• Every invoice received must be in accordance with the supplier's order
number. If all goods are sent in good condition, the shop clerk must record
everything into the system.
• The operational manager should verify the item description is identical to the
item described on the purchase order issued to the supplier, warehouse and
manufacture.
• The goods must be put in the right section of display to prevent misinformation
and calculation when recording the remaining stock