Slide 1: Presented By-
DINESH SHARMA INVENTORY
MANAGEMENT Slide 2: Inventory + Management -: Inventory :-
A detailed list of all the items in stock -: Management :-
The act of managing something INVENTORY MANAGEMENT : INVENTORY MANAGEMENT Properly maintaining adequate stocks to ensure uninterrupted service Types of Inventory : Types of Inventory Raw materials
Purchased parts and supplies
Work-in-process (partially completed) products (WIP)
Items being transported
Tools and equipment Inventory Positions in the Supply Chain : Inventory Positions in the Supply Chain Inventory used form Raw
in Field Inventory Management Involves Knowing… : Inventory Management Involves Knowing… What and how much stock you have
When to order fresh supplies
What and how much has been ordered, when it was ordered
Where all supplies are stored
When and how much fresh stock was received, and by whom Reasons for Inventories : Reasons for Inventories Improve customer service
Economies of purchasing
Economies of production
Hedge against future
Unplanned shocks (labor strikes, natural disasters, surges in demand, etc.)
To maintain independence of supply chain Nature of Inventory : Nature of Inventory Remember this?
Cost Inventory Costs : Inventory Costs Carrying cost
cost of holding an item in inventory
cost of replenishing inventory
temporary or permanent loss of sales when demand cannot be met Cost Model : Cost Model Classifying Inventory Items : Classifying Inventory Items ABC Classification (Pareto Principle)
A Items: very tight control, complete and accurate records, frequent review
B Items: less tightly controlled, good records, regular review
C Items: simplest controls possible, minimal records, large inventories, periodic review and reorder Maintain Inventory Records : Maintain Inventory Records Stock Card
Simple, heavyweight cards
Kept for each item in stock Stock Book or Computer Record
Contains listing of all items in the laboratory
Update monthly after physical count
Use information from stock cards Stock Card: : Stock Card: Item Name: __________ Unit: __________
Minimum Stock (Re-Order Level): ___________ Calculating Minimum Stock Level : Calculating Minimum Stock Level Maximum lead time = 2 weeks
Maximum usage/wk = 3 kits
Minimum stock level = 2 x 3 = 6 kits
When only 6 kits are left, place an order Ensure Proper Storage of Inventory : Ensure Proper Storage of Inventory Keep in a clean , organized and located storeroom.
Store according to manufacturer’s instructions
Place in well ventilated room
Store away from direct sunlight Place items on shelves
New shipments placed behind existing items First in, first out Key Messages : Key Messages Maintain an adequate inventory at all time
Don’t let any item run out before re-order.
Never order more than your storage space can hold. Never order more supplies than you can use before they are expired.
All items in the inventory must be accounted for and recorded.
Always inspect new shipment before accepting.