ANJUMAN POLYTECHNIC

SADAR, NAGPUR
2021-22

CIVIL ENGINEERING DEPARTEMENT

SUBJECT : CONSTRUCTION MATERIAL
TOPIC: PREPARE A REPORT ON DIFFERENT FORMS OF
INVENTORY STORAGE ALONG WITH YOUR
INTERPRETATION.
YEAR : 3RD SEMESTER : 6TH

GUIDED BY: SUBMITTED BY:

DR. SYED ZAFAR ANKIT PASHINE (47)
INTRODUCTION

Inventory is goods or stock a business keeps on hand to

meet the demands of customers or to be used in the
manufacture of a product. It can be the food on your
grocer’s shelf, the replacement parts stocked by a
hardware store or the manufacturing components
necessary to make a computer. In general, inventory can
be divided into four groups: raw material, spare parts,
work-in-process and finished goods.
WHAT IS AN INVENTORY?

Inventory is an accounting term that refers to goods that

are in various stages of being made ready for sale,
including:

 Finished goods (that are available to be sold)

 Work-in-progress (meaning in the process of being
made)
 Raw materials (to be used to produce more finished
goods)

Inventory is generally the largest current asset – items

expected to sell within the next year – a company has.

TAKING INVENTORY

In order to ensure that all accounting records are up-to-

date and accurate, businesses manually take an
inventory count at the end of each accounting period,
which is typically quarterly or annually. Companies that
do a daily inventory count are considered to take
perpetual inventory, because their count is always
current.

Any difference discovered between the inventory count

on the company’s balance sheet and what is actually on-
hand is termed “shrinkage.” It’s the inventory that is
missing, for whatever reason. Sometimes the inventory is
lost, other times it is stolen.

JUST-IN-TIME INVENTORY

One way to try and reduce the size of your on-hand

inventory is to use a just-in-time strategy. Using a just-in-
time approach means that materials are delivered just in
time to meet current customer demand. As a result, you
have less inventory sitting around, waiting to be
produced or sold.
To be successful using just-in-time, you have to have an
accurate idea of how much you’ll sell in between product
deliveries. If you’re selling 250 pairs of shoes a week and
you receive deliveries every Friday, ideally you’ll receive
250 this Friday, to keep up with demand. However, if
demand picks up or declines in between deliveries, you
can end up with problems.

Having too much inventory is risky because you run the

risk of being stuck with merchandise that is obsolete or
past its prime.

FORMS OF INVENTORY STORAGE

 BLOCK STACKING

In block-stacking, storage begins on a pallet or the

floor. Your storage costs are minimal because you do
not need additional equipment or materials. The
trade-off for lower costs is lack of convenient access;
your employees can only retrieve stock on the front
top of the stack. Block-stacking works well with
inventory that you plan to use or sell fairly quickly,
especially featured sale merchandise. Inventory at
the bottom must be self-supporting and able to hold
other items; thus, you might have the same type of
product on a single pallet or stack.

 RACKS
Storage racks afford the support and convenience
lacking with a block-stacking approach. How you
design racks is tied to whether you employ last-in,
first-out or first-in, first-out inventory management.
Last-in, first-out operations use drive-in racks or
push-back racks that are closed at the upper level.
In these racks, employees access stock from only
one end. Drive-through racks allow loading and
unloading in multiple places and flow-through racks
rely on gravity to push stock from top to bottom;
these methods work with first-in, first-out
management.
 SHELVES AND BINS

Shelves and bins can take the stationary, mobile or

flexible form. If you want to eliminate aisles and
create more storage space, you might choose aisle-
savers that slide or track inventory. Push-button or
automated carousels spin needed inventory to its
user or system operator. Bins can effectively store
small quantities of items of various sizes.

 CENTRAL STORAGE

You and your staff can more easily access and

accurately track inventory in a single storage
location, such as a warehouse or a stockroom.
Central storage systems rely on bins and shelves or
other specialized techniques. However, with central
storage comes less safety stock, or inventory you
keep as a buffer or reserve in case of unexpected
spikes in demand.

 POINT-OF-USE STORAGE

Just-in-time and repetitive production operations

employ point-of-use storage. Inventory is placed
with its users at a station or the store. Point-of-use
means fewer handlers and lower operating costs.
There exists little need for a warehouse or central
location and the maintenance, security or utilities
for such a building. Your employees can readily
obtain inventory through point-of-use storage.
  DRY STORAGE

Restaurants, grocers and other food businesses use

dry storage for bread, pasta and other dry foods.
Proper temperature, ventilation, light, cleanliness
and humidity levels are critical to avoiding bacteria
and rust in your products. If you have dry inventory,
keep your storage area between 50 and 70 degrees
Fahrenheit and 50 to 60 percent relative humidity.
Avoid high temperatures by keeping at least two
feet between your inventory and the ceiling. Dry
storage relies on your staff properly labeling and
securing shelves and bins. Because many dry goods
have a short shelf-life, businesses using dry storage
rotate stock on a first-in-first out basis.
  COLD STORAGE

Certain food inventory is stored in refrigerators,

coolers and freezers to maintain safety and
preserve quality. Typically, refrigerators keep food
up to seven days; if you don't need food quickly,
you can use freezers, which can keep certain foods
up to a year. Products like eggs, buttermilk,
pudding, cream cheese, biscuits and pizza dough do
not freeze well, but some juices can last up to one
year in a freezer.
INTERPRETATION

 It requires less amount of space for storage

 Minimize the extra cost requirements
 It helps to store material in proper order
 Helps in identifying different materials /product in
one place
 We can store more material in an limited amount of
space
 Maintaince of such storages are easy and cheap
 Safety of product is manage.
CONCLUSION

Since transportation is rather expensive, the combination

of orders at different time interval was carefully
calculated and constantly updated. From the EOQ graphs
that were developed throughout the paper as in Figure
3.11, it can be seen that reorder point sometimes
coincide or occur close together. A fairly simple schedule
will be tested by J. O. Adimoha’s investment to know if
modifications are required. The reorder points and EOQs
changed and were readjusted and modeled to maintain
equilibrium or costs minimization.
REFERENCE

[1] Downs, B.; Metters, R. and Semple, J. (2001).

Management Inventory with Multiple Products, lags in
Delivery, Resource Constraints and Lost Sales: A
Mathematical Programming Approach. Management
Science. Volume 47, Number 3. 464-479.

[2] Coyle, J.J.; Bardi, E.J. and Langley, J.C. (2003). The
management of Business Logistics: A Supply Chain
Perspective. Canada. Thomsom South-Western.