2. Deterministic Model
Mathematical model in which outcomes are precisely
determined without any room for random variation. In such
models, a given input will always produce the same output.
Inventory Control System
An inventory control system is a process for managing and
locating objects or materials. In common usage, the term may
also refer to just the software components.
3.
4. MODELS OF INVENTORY CONTROL
The ABC Classification: The ABC classification system is to
grouping items according to annual sales volume, in an attempt to
identify the small number of items that will account for most of the
sales volume and that are the most important ones to control for
effective inventory management.
Reorder Point: The inventory level R in which an order is placed
where R=D*L, D=demand (day,week,etc), and L=lead time.
Safety Stock: Remaining inventory between the times that an order is
placed and when new stock is received. If there are not enough
inventories then a shortage may occur
5.
6. MODERN INVENTORY CONTROL SYSTEMS
Modern inventory control systems often rely upon Barcodes
and radio-frequency identification (RFID) tags to provide
automatic identification of inventory objects.
Inventory objects could include any kind of physical asset like
merchandise, consumables, fixed assets, library books, or
capital equipment.
To record an inventory transaction, the system uses a barcode
scanner or RFID reader to automatically identify the inventory
object, and then collects additional information from the
operators
9. New Trend
The new trend in inventory management is to label inventory
and assets with QR Code, and use smartphones to keep track of
inventory count and movement. These new systems are
especially useful for field service operations, where an employee
needs to record inventory transaction or look up inventory stock
in the field, away from the computers and hand-held scanners
