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Questions and Answers
What is the objective of Stock Replenishment?
What is the objective of Stock Replenishment?
Who decides the type and quantum of stock to be held?
Who decides the type and quantum of stock to be held?
What does the Stocking Policy/Inventory Management Policy consider when optimizing stock holding?
What does the Stocking Policy/Inventory Management Policy consider when optimizing stock holding?
What does Inventory Management base its strategy on?
What does Inventory Management base its strategy on?
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What does the Stock Replenishment process aim to achieve in relation to inventory holding?
What does the Stock Replenishment process aim to achieve in relation to inventory holding?
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Which department is responsible for deciding the stock holding strategy?
Which department is responsible for deciding the stock holding strategy?
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What is a key consideration in deciding the type and quantum of stock to be held?
What is a key consideration in deciding the type and quantum of stock to be held?
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What does the Stocking Policy/Inventory Management Policy aim to optimize?
What does the Stocking Policy/Inventory Management Policy aim to optimize?
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What is the primary consideration when deciding stock holding according to Stocking Policy/Inventory Management Policy?
What is the primary consideration when deciding stock holding according to Stocking Policy/Inventory Management Policy?
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What is one of the controls used in Inventory Management?
What is one of the controls used in Inventory Management?
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What does 'R' represent in the stock replenishment process?
What does 'R' represent in the stock replenishment process?
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Who is responsible for reviewing stock items when they reach or go below the minimum level in the reordering template?
Who is responsible for reviewing stock items when they reach or go below the minimum level in the reordering template?
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What is the basis of measurement for the timeliness of the stock replenishment process?
What is the basis of measurement for the timeliness of the stock replenishment process?
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What is 'S' in the context of stock replenishment?
What is 'S' in the context of stock replenishment?
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In what document does the Stock Report serve as an input?
In what document does the Stock Report serve as an input?
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What is 'q' in the context of stock replenishment?
What is 'q' in the context of stock replenishment?
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What does 'Q' represent in the stock replenishment process?
What does 'Q' represent in the stock replenishment process?
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What is the frequency of the Stock Report document?
What is the frequency of the Stock Report document?
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What is measured by the Accuracy of the Stock Report key performance indicator?
What is measured by the Accuracy of the Stock Report key performance indicator?
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Who decides upon the quantity to be ordered when reviewing a stock item?
Who decides upon the quantity to be ordered when reviewing a stock item?
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What method will be used for effective inventory management in NNPC Limited?
What method will be used for effective inventory management in NNPC Limited?
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What will be incorporated into all contractual agreements for stock items?
What will be incorporated into all contractual agreements for stock items?
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How will stock replenishment of operative stock be ensured?
How will stock replenishment of operative stock be ensured?
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What will be used to manage stocks for cost optimization in computerized inventory management systems?
What will be used to manage stocks for cost optimization in computerized inventory management systems?
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When will sourcing for new materials be initiated?
When will sourcing for new materials be initiated?
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What is considered the same as standard operating spares?
What is considered the same as standard operating spares?
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What will competent local suppliers be encouraged to hold for direct purchase?
What will competent local suppliers be encouraged to hold for direct purchase?
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What will be used to decide the stock order quantity?
What will be used to decide the stock order quantity?
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When will stock replenishment be triggered?
When will stock replenishment be triggered?
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How are project materials restricted for use?
How are project materials restricted for use?
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Study Notes
- Material Requirement Planning (MRP) will be used for effective inventory management in NNPC Limited.
- Supply Agreements will be set up for critical spare parts with either OEM or their accredited representatives.
- Buy-back option will be incorporated into all contractual agreements for stock items.
- Competent local suppliers will be encouraged to hold adequate stock of materials for direct purchase.
- Drilling and completion materials are purchased for stock to meet the demands of specific drilling campaigns.
- Spare parts for maintaining drilling equipment and rigs shall be considered the same as standard operating spares.
- Project materials are restricted for use by the specific project only.
- SCM shall make users aware of warehouse stock balances and consumption pattern when purchasing project materials.
- Sourcing for new materials shall not be initiated without confirming stock availability.
- Stock replenishment of operative stock shall be ensured through adherence to set materials management parameters.
- Stock levels for office consumables and household goods shall be as lean as possible using Just-In-Time.
- Minimum and maximum stock levels shall be set based on estimated monthly consumption, total elapsed time, average safety stock, and criticality.
- Stocks shall be managed using minimum and maximum levels with provisioning levels agreed upon by the Supply Chain Management (SCM) and User departments.
- Stock order quantity shall be decided by the difference between the estimated monthly consumption and current availability.
- Economic Ordering Quantity (EOQ) calculation shall be used to manage stocks for cost optimization in computerized inventory management systems.
- For manual stock replenishment, Quantity to Order (Q) can be calculated using estimated future average monthly consumption, period between ordering reviews, total elapsed time, stock on hand, and order quantity (q).
- Minimum and maximum stock levels will be set based on average estimated monthly consumption, total elapsed time, safety stock, and criticality.
- Stock replenishment shall be triggered when stock quantity reaches or goes below the minimum level (re-order level).
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Description
Learn about the framework for effective maintenance of NNPC Limited stock items, in accordance with NNPC Limited Stocking Policy, Asset Management and Accounting Principles. Understand the process of analyzing stock records and replenishment to ensure a desired service level for User Departments in an economic manner.
