:Inventory Management techniquesPresented By:•Rohit Kamble # 5•Philomen Prem # 10•Sanjeev Kumar # 15•Shrutee Rajendra Acha...
Inventory Definition2
3
T y p e s o fI n v e n t o r y :Work inprocessWork inprocessWork inprocessFinishedgoodsRawMaterialsVendors Customer4
Reasons To Hold Inventory:5
Objective of Inventory Management:6
An effective inventory managementshould:•Ensure a continuous supply of raw materials to facilitateuninterrupted production...
An optimum inventory level involves threetypes of costs:8
SDFClassification of inventory:9
ABC ClassificationThe ABC analysis is a businessterm used to definean inventory categorizationtechnique often usedin mater...
HML Classification:T h e H M L a n a l y s i si s u s e f u l f o rk e e p i n g c o n t r o lo v e r c o n s u m p t i o ...
FSN Classification:According to theconsumption pattern.To combat obsoleteitemsF – Fast movingS – Slow movingN – Non Moving...
SOS Classification:Raw materials especially for agricultureunits:S – SeasonalOS – Off seasonal13
•I n v e n t o r y ma n a g e me n t h a s t o d o w i t hk e e p i n g a c c u r a t e r e c o r d s o f f i n i s h e dg...
THANK YOU15
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Production

  1. 1. :Inventory Management techniquesPresented By:•Rohit Kamble # 5•Philomen Prem # 10•Sanjeev Kumar # 15•Shrutee Rajendra Acharya# 21•Ruchit Parmar# 27•Vandana Dubey #37•Khandu Chaudhari # 40Presented to:Mrs. Sarika Ma’am1
  2. 2. Inventory Definition2
  3. 3. 3
  4. 4. T y p e s o fI n v e n t o r y :Work inprocessWork inprocessWork inprocessFinishedgoodsRawMaterialsVendors Customer4
  5. 5. Reasons To Hold Inventory:5
  6. 6. Objective of Inventory Management:6
  7. 7. An effective inventory managementshould:•Ensure a continuous supply of raw materials to facilitateuninterrupted production.•Maintain sufficient stocks of raw materials in periods ofshort supply and anticipate price changes.•Maintain sufficient finished goods inventory for smoothsales operation, and efficient customer service.•Minimize the carrying cost and time.•Control investment in inventories and keep it at an optimumlevel.7
  8. 8. An optimum inventory level involves threetypes of costs:8
  9. 9. SDFClassification of inventory:9
  10. 10. ABC ClassificationThe ABC analysis is a businessterm used to definean inventory categorizationtechnique often usedin materials management. It isalso known as SelectiveInventory Control. Policiesbased on ABC analysis:A ITEMS: very tight control andaccurate records.B ITEMS: less tightly controlledand good records.C ITEMS: simplest controlspossible and minimal records.X Y ZA n a l y s i s :On the basis of value ofinventory storedWhereas ABC was onthe basis of value ofconsumption to value.X – High ValueY – Medium valueZ – Least valueAimed to identify itemswhich are extensivelystocked. 10
  11. 11. HML Classification:T h e H M L a n a l y s i si s u s e f u l f o rk e e p i n g c o n t r o lo v e r c o n s u m p t i o na t d e p a r t m e n t a ll e v e l s , f o rd e c i d i n g t h ef r e q u e n c y o fp h y s i c a lv e r i f i c a t i o n , a n df o r c o n t r o l l i n gp u r c h a s e s .Aimed to control the purchase ofraw materials.H – High,M- Medium,L - LowVED Classification:•Mainly for spare partsbecause their consumptionpattern is different fromraw materials.•Raw materials onmarket demand•Spare parts onperformance of plant andmachinery.•V – Vital,•E – Essential,•D – Desirable 11
  12. 12. FSN Classification:According to theconsumption pattern.To combat obsoleteitemsF – Fast movingS – Slow movingN – Non MovingSDF & GOLF ClassificationB a s e d o ns o u r c e o fp r o c u r e me n tS – S c a r c e ,D - D i f f i c u l t ,E - E a s y .GOLF:G – G o v e r n me n t ,O – O r d i n a r y ,L – L o c a l ,F – F o r e i g n .12
  13. 13. SOS Classification:Raw materials especially for agricultureunits:S – SeasonalOS – Off seasonal13
  14. 14. •I n v e n t o r y ma n a g e me n t h a s t o d o w i t hk e e p i n g a c c u r a t e r e c o r d s o f f i n i s h e dg o o d s t h a t a r e r e a d y f o r s h i p me n t .•T h i s o f t e n me a n s p o s t i n g t h e p r o d u c t i o no f n e w l y c o mp l e t e d g o o d s t o t h e i n v e n t o r yt o t a l s a s w e l l a s s u b t r a c t i n g t h e mo s tr e c e n t s h i p me n t s o f f i n i s h e d g o o d s t ob u y e r s .•I n a d d i t i o n t o ma i n t a i n i n g c o n t r o l o f t h ev o l u me a n d mo v e me n t o f v a r i o u si n v e n t o r i e s , i n v e n t o r y ma n a g e me n t a l s oma k e s i t p o s s i b l e t o p r e p a r e a c c u r a t er e c o r d s t h a t a r e u s e d f o r a c c e s s i n g a n yt a x e s d u e o n e a c h i n v e n t o r y t y p e .•Wi t h o u t p r e c i s e d a t a r e g a r d i n g u n i tv o l u me s w i t h i n e a c h p h a s e o f t h e o v e r a l l14
  15. 15. THANK YOU15

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