The document discusses different inventory classification systems: - The High, Medium, Low (HML) classification ranks inventory items based on unit value rather than annual consumption. Items are sorted by descending unit value and assigned to categories based on pre-set value thresholds. - A two-bin inventory system uses two bins to monitor inventory levels of low-value items. When one bin is empty, it is refilled from the second bin to minimize stockouts. - Inventory classification systems help control consumption at the department level, determine verification frequency, and delegate purchasing authority. They aid in inventory management and buying policies.

1. SUB TO-
Ms. NEHA THAKUR
ASST PROFFESOR
JMIT RADOUR
SUB BY-
GULSHAN KUMAR
2016012,MBA 1ST

2. HIGH MEDIUM LOW

3.  TheHigh, medium and Low (HML)
classification follows the same procedure as is
adopted in ABC classification.
 Only difference is that in (HML) High, Medium
and low, the classification unit value is the
criterion and not the annual consumption value.
 The items of inventory should be listed in the
descending order of unit value and it is up to the
management to fix limits for three categories.

4.  For example,
 The management may decide:
 All units with unit value of Rs. 2000 and
above will be H items,
 Rs.1000 to 2000 will be M items
 and less than Rs.1000 will be L items.
unit value 2000 + 1000-2000 0-1000
CATOGARY HIGH MEDIUM LOW

5.  Determine the frequency of stock verification.
 To keep control over the consumption at the
department level.
 To evolve buying policy, to control purchase.
 To delegate the authority to different buyer.

6.  keeping control over consumption at
departmental levels,
 for deciding the frequency of physical
verification and
 *for controlling purchases.

9.  ATwo-bin inventory control is
an inventory control system used to monitor
the quantity of an item left behind.The two-
bin inventory control method is mainly used
for small or low value items.

10.  Two bin systems area unit common on
assembly and moving producing lines
wherever elements area unit added to the
merchandise or item being designed.
 The 2 bin system is simply like its name
suggests, it's composed of 2 bins that area
unit filled with elements or materials to start
out.

11.  CHEAP SYSTEM.
 THE MINIMAL CHANCE OF STOCK OUT.
 EASYTO APPLY.

12.  We must of more quantity of stock when
needed.
 Its not recommended for expencive product.
 Its not recommended for product with short
life.