Inventory control is the process of measuring and regulating inventory according to predetermined norms like economic order quantity to reduce costs. It aims to balance ordering, holding, and shortage costs. Key aspects of inventory control include classifying items using ABC analysis based on annual consumption value, determining reorder points and levels, and maintaining safety stocks to account for demand fluctuations and lead time uncertainties. The economic order quantity model calculates the optimal order size to minimize total annual inventory costs.
Inventory Management Hacks: Inventory management is one of the most important tasks for supply chain management professionals.
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Inventory Management
Use of Inventory
Types of Costs
ABC Analysis
VED Analysis
Economic Order Quantity (EOQ)
Types of Inventory Management System
Assumptions of EOQ
Basic Fixed Order Quantity Model (EOQ)
EOQ Curve
ABC and VED Classification
Function / Use of Inventory
What is inventory?
Inventory Account
Calculate inventory
Inventory system
Types of Inventory system- perpetual & periodic inventory systems
Comparison between periodic and perpetual inventory systems
Inventory valuation method- FIFO, LIFO, HIFO, Averag cost method or weihted average cost method
Inventory Management Hacks: Inventory management is one of the most important tasks for supply chain management professionals.
Here is 4 simple inventory management hacks by http://emergeapp.net
Inventory Management
Use of Inventory
Types of Costs
ABC Analysis
VED Analysis
Economic Order Quantity (EOQ)
Types of Inventory Management System
Assumptions of EOQ
Basic Fixed Order Quantity Model (EOQ)
EOQ Curve
ABC and VED Classification
Function / Use of Inventory
What is inventory?
Inventory Account
Calculate inventory
Inventory system
Types of Inventory system- perpetual & periodic inventory systems
Comparison between periodic and perpetual inventory systems
Inventory valuation method- FIFO, LIFO, HIFO, Averag cost method or weihted average cost method
Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.
Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.
ABC Analysis and Inventory Control Entrepreneurship Class 12 CBSELovell Menezes
Chapter 5 - Business Arithmetic . ABC analysis
The inventory control technique known as ABC analysis builds on Pareto's Principle. In ABC analysis, a company reviews its inventory and sorts all SKUs into three categories, called "A" , "B" and "C" items. The typical breakdown might look like this: "A" inventory: 20 percent of SKUs, 80 percent of value. "B" inventory: 30 percent of SKUs, 15 percent of value. "C" inventory: 50 percent of SKUs, 5 percent of value. Pareto's Principle and ABC analysis for control
Whether or not you're familiar with the economic principle known as
Pareto's Principle
, you may have observed its effects. This principle holds that in a given system, a relative handful of "causes" will produce the majority of "effects." For example, one may find that 20 percent of customers are responsible for 80 percent of sales, or that 30 percent of the product lines result in 70 percent of returns. The principle is named for Vilfredo Pareto, an Italian economist who studied land ownership in
Italy in the early 1900‘s and found that roughly 20 percent of the population held title to about
80 percent of the land. Legend has it that he further developed the theory upon observing that 20 percent of the pea pods in his garden produced 80 percent of the peas. For this reason, Pareto's Principle is often referred to as the "80/20" rule.
hey friends, we know from earlier research that material control is the major component of cost. so, let us have a look at few tenchniques relating to material control
Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.
Product Management- Inventroy Management and Controls.pptxRAHUL PAL
In manufacturing operations, production management includes responsibility for product and process design, planning and control issues involving capacity and quality, and organization and supervision of the workforce.
Production management aims to monitor and improve the efficiency of activities, materials, staff resources, and budgets to produce goods. Production outcomes vary according to the industry. A production manager ensures that manufacturing stays on schedule, within budget, and achieves the desired output goals.
Product Management: Inventory Management and Controls.pdfPrachi Pandey
Product management in the pharmaceutical industry plays a vital role in all 4 phases of the product life cycle. It is responsible for the top line (gross revenue generation) along with the sales team and bottom line (EBITA which is revenue before interest, taxes, depreciation, and amortization) targets of a pharmaceutical organization.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
2. INTRODUCTION
The term inventory means the value or amount of materials or
resource on hand. It includes raw material, work-in-process,
finished goods & stores& spares.
Inventory Control is the process by which inventory is measured
and regulated according top re determined norms such as
economic lot size for order or production, safety stock, minimum
level,maximum level, order level etc.
Inventory control pertains primarily to the administration of
established policies, systems &procedures in order to reduce the
inventory cost.
3. OBJECTIVES OF INVENTORY CONTROL
To meet unforeseen future demand due to variation in forecast figures and actual figures
To average out demand fluctuations due to seasonal or cyclic variations.
To meet the customer requirement timely, effectively, efficiently, smoothly and satisfactorily
To smoothen the production process.
To facilitate intermittent production of several products on the same facility.
To gain economy of production or purchase in lots.
4. To reduce loss due to changes in prices of inventory items.
To meet the time lag for transportation of goods.
To meet the technological constraints of production/process.
To balance various costs of inventory such as order cost or set up cost and inventory carrying cost.
To balance the stock out cost/opportunity cost due to loss of sales against the costs of inventory.
To minimize losses due to deterioration, obsolescence, damage, pilferage etc.
To stabilize employment and improve lab our relations by inventory of human resources and machine efforts.
To balance the stock out cost/opportunity cost
6. BENEFITS OF INVENTORY CONTROL
Ensures an adequate supply of materials
Minimizes inventory costs
Facilitates purchasing economies
Eliminates duplication in ordering
Better utilization of available stocks
Provides a check against the loss of materials
Facilitates cost accounting activities
Enables management in cost comparison
Locates & disposes inactive & obsolete store items
Consistent & reliable basis for financial statements
7. TYPES OF INVENTORY COSTS
Ordering (purchasing) costs
Inventory carrying (holding) costs
Out of stock/shortage costs
Other costs
8. ECONOMIC ORDER QUANTITY (EOQ);
EOQ or Fixed Order Quantity system is the technique of ordering materials whenever stock reaches the reorder
point.
Economic order quality deals when the cost of procurement and handling of inventory are at optimum level and
total
cost is minimum.
In this technique, the order quantity is larger than a single period’s ne requirement so that ordering costs &
holding
costs balance out.
9. BASIC FIXED ORDER QUANTITY MODEL (EOQ)
Total Annual Cost = Annual Purchase cost + Annual holding cost + Annual Ordering Cost
10. IMPORTANT TERMS :
Minimum Level – It is the minimum stock to be maintained for smooth production.
Maximum Level – It is the level of stock, beyond which a firm should not maintain the stock.
Reorder Level – The stock level at which an order should be placed.
Safety Stock – Stock for usage at normal rate during the extension of lead time.
Reserve Stock - Excess usage requirement during normal lead time.
Buffer Stock – Normal lead time consumption.
11. ALWAYS BETTER CONTROL (ABC) ANALYSIS
This technique divides inventory into three categories A, B & C based on their annual consumption value.
It is also known as Selective Inventory Control Method (SIM)
This method is a means of categorizing inventory items according to the potential amount to be controlled.
ABC analysis has universal application for fields requiring selective control.
12. PROCEDURE FOR ABC ANALYSIS
Make the list of all items of inventory.
Determine the annual volume of usage & money value of each item.
Multiply each item’s annual volume by its rupee value.
Compute each item’s percentage of the total inventory in terms of annual usage in rupees.
Select the top 10% of all items which have the highest rupee percentages & classify them as “A” items.
Select the next 20% of all items with the next highest rupee percentages & designate them “B” items.
The next 70% of all items with the lowest rupee percentages are “C” items.
13. VED CLASSIFICATION
VED: Vital, Essential & Desirable classification
VED classification is based on the criticality of the inventories.
Vital items – Its shortage may cause havoc & stop the work in organization.
They are stocked adequately to ensure smooth operation.
Essential items - Here, reasonable risk can be taken. If not available, the plant does not stop; but the efficiency
of operations is adversely affected due to expediting expenses.
They should be sufficiently stocked to ensure regular flow of work.
Desirable items – Its non availability does not stop the work because they can be easily purchased from the
market as & when needed.
They may be stocked very low or not stocked.
14. 1) LEAD TIME:
This is the time gap between placement of an order and the time of actual supply.
It is composed of three components.
Lead time=servicing time+ delivering time+ receiving time
Servicing time:
It is the time taken for placing an order , it includes time for obtaining references, time for negotiating, time for visiting potential
suppliers. Time for lefting contracts.
DELIVERY TIME:
The time taken by the supplier to the company for certain order.
RECEIVING TIME:
Time for parking un certaining goods, time for inspection of goods, time for the moment of the goods to the store. time for
entering goods in a stock.
15. 5) SAFETY STOCK AND BUFFER STOCK:
The demand and supply rates can never be assessed exactly. There is bounded to be dispensary between actual and estimated
demand and supply quantities with fair degree of uncertainty. The organization with a policy of safe guarding their interest against
their uncertainties to maintain the level of inventory at the same desire minimum level.
This is the minimum level of inventory to cover some unforces seen and uncalled for the situation is known as safety (or) buffer
stock.
Average stock availability in inventory when the fresh supply arrive.
FACTORS AFFECTING CHOICE OF SAFETY STOCK:
Uncertainty in demand
Degree of assurance for any items
Uncertainty in lead time
Size of the batch
There are two approaches to determine the safety stock to be left in order to cover the demand rate variations.
1. Exploit consideration of shortage of cost
2. Implicit consideration of shortage of order.