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Inventories (1)

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  • 1. INVENTORIES MADE BY: ARIEL AREVALO RIAÑO
  • 2. INVENTORIES • Inventory is defined as the set of assets that a company possesses in stock. Inventories in a company covers raw material inventory, work in process inventory, maintenance/repair and finished good inventory.
  • 3. TYPES OF INVENTARY • Organizations establish the functions of inventory according to the items and purposes. PRO MILK uses finished-goods inventory: they are products finished to export and to be shipped to customers target market in France.
  • 4. INVENTORIES POLICIES Inventories are the most complex part of the companies, due to the link it has with the cycles that develop as the case of sales, portfolio, expenses and income; also depends on the good management inventories that determinates the costs of the final product. Inventory cycles involved in the company are: • Purchase Order Processing: are used to perform the purchasing department enlistment for items needed for inventory. When the inventory reaches a predetermined level the orders are placed for materials required for a customer order. • Receiving materials: those are inspected in quantity and quality, quantities are verified vs. delivery note and invoice for the order to be part of the inventory and this is supplied with the product taken. (BPM). • Storage of raw materials, when the materials are stored in the warehouse until required for production, that by order approved.
  • 5. INVENTORIES POLICIES • Processing items: is defined by the quantities to be produced, is usually based on customer orders, sales forecasts, predetermined levels of finished product inventories. • Storage of finished goods: as the production department finishes the product, pass to the warehouse or to their respective office. To provide a fundamental basis for inventory,control lies in providing a reliable and accurate information on existing quantities of each product and its physical location. This information allows the analysis to other units such as Purchasing and Production, turnover of goods with which they can make quick decisions, and knowing at all times how many are the assets of the company by managing all good information and by support implementation of tools that enable better management of inventory control.
  • 6. INVENTORIES POLICIES • To make it clearer to stock and by identifying inventory cycles (named on previous page), you should structure the staff functions that are in areas where there is higher demand, so that the work done is faster and to keep real inventory balances for decision-making in all areas of the company, the operator that receives raw materials is not the same that dispatch and it has to be able to implement a 15-day management stock of the references that are in greater demand and depleted generate or delays in their respective office. • For better planning, is necessary to keep track of inputs and outputs in the warehouses, production and product delivered and most importantly handle cycle inventory. to establish the exact numbers of existing assets you must assign a person who engages in perform these daily task, for the billing department is imperative that the request is checked by the customer performed without a hitch. • To avoid differences in each product shipments is necessary verifications and finished product counts, finding quantities released vs quantities listed in the bill, all recorded by a paper delivered product, you should do the staff responsible for billing staff offices, and turn benefits from being a point of reference for verification of product having units unlike any eventuality to occur.
  • 7. INVENTORIES POLICIES • When no returns or exchanges recorded in customer presented at the time, this alters the inventory figures both outputs (changes) as inputs (breakdowns), is essential to assign a responsible product integrity to the company, by daily report, informing the reasons given by the client, the status of the product, the amount received. The record output of products to cover a shift or returns, helps to maintain an updated inventory changes that would decrease in numbers and / or missing product for not having an updated inventory. • The differences that can occur in an inventory can arise for typing errors, bad count, a bad office, not to enter an invoice, mishandling reports of the personnel. Training is indispensable constantly in each area that need to be involved to have a real inventory, both accounting and physically, sensibilized the staff to the position, they are is assigned and always have a new verification supervisors if any inconsistency. • The logistics area must comply with the job of ensuring the quality of service to meet customer needs, build on the actual information that has inventory, continuous consultations with clients in the event that this product is sold out, all this for continuous improvement of the company.
  • 8. CONCLUSIONS • Inventories are essential in a company, it is no longer storage if not constant movement of articles, direct flow, offices, production, delivery, it is essential to inventory to be more productive through new tools for visibility, agility and control . • Take a good inventory management helps reduce costs, increase sales and become a more competitive market, to identify the product that is about to expire, quality standardization, has used space, is known accurately assets of the company, with the goods you have and how you need and foremost with a good inventory management utilities available. • By monitoring the inventory you create accurate, avoiding shortages and fluctuations in peak seasons.