Inventory Management

                                                   Inventory Management



List management is the process of efficiently inspecting the continuous flow of units in the current list. In this process, generally involves controlling the transfer of units to prevent the list from being too high, or there is a reduction in the levels which can jeopardize the operation of the company. Enabled list management also tries to control the costs associated with the list from both the perspective of the total value of the inventory list and the cumulative value generated by the list.

Balancing the various functions of inventory management means to focus on the three major aspects of any list. The first aspect is to do with time. In relation to the materials acquired for inclusion in the total list, this means how much time it takes to process the supplier's order and execute delivery. List management also demands that a solid understanding of how long it will take to move these materials out of the list will be established. It is possible to know these two important lead times when order should be given and how many units should be ordered to run the production smoothly.

Calculating known as buffer stocks is also the key to effective list management. Essentially, there are additional units above and beyond the minimum number required to maintain the buffer stock production level. For example, the manager can determine that it would be a good idea to put one or two additional units of a given machine part in hand, if an emergency situation arises or one of the units is proven to be faulty is. By making this cushion or buffer, the opportunity to disrupt the production due to the lack of necessary parts in the operation supply inventory decreases.

The inventory management is not limited to documenting the movement of raw materials and the movement of those materials in the operational process. Movement of those materials through various stages of operation is also important. Generally known as goods or work, in the progress list, the items used to prepare the material before ordering the quantity of raw materials before hazardous decreases or before reaching the adverse level Helps identify the need to adjust.Lastly, inventory management is to be done with keeping accurate records of finished goods, which are ready for shipments. This means that together with the total totals of the inventory of new full goods, the buyers are also required to reduce the most recent shipments of finished goods. When there is a company's return policy, there is usually a sub-category contained in the finished goods list, which is in the account for any returned item, which is re-classified as a renewed or second class quality. Maintaining accurate data on the finished goods list can provide information to the sales personnel that whatever is available and ready for shipment at any time.

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