This document discusses inventory management policies at PRO MILK. It defines inventory as raw materials, work in process, and finished goods. PRO MILK uses finished goods inventory for exported products and customers in France. The document outlines PRO MILK's inventory cycles including purchase order processing, receiving materials, storage of raw and finished materials, processing items, and storage of finished goods. It emphasizes the importance of accurate inventory information and tracking inputs and outputs to warehouses and production to establish true inventory levels and enable quick decision making.

1. 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.  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.

6.  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.

7.  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 against quantities listed in
the bill, all recorded by to paper delivered product, You should do the staff
responsible for billing staff offices, and turn benefits frombeing a point of
reference for verification of product having units Unlike any eventuality to
occur.

8.  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.

9. CONCLUSIONS
 The inventories are very important in a company since they are handled
much control information and this leads to an effective and concise
organization and trained for this purpose and so to make fewer
mistakes possible.
 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

10. Thanks