Stock Review Process
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Questions and Answers

What is one of the objectives of the Stock Review process?

  • Enhance investment recovery (correct)
  • Increase stock holding costs
  • Reduce user department involvement
  • Minimize stock ordering process
  • Who decides the type and quantity of stock to be held according to the Stocking/Inventory Management Policy?

  • Management without SCM or User Department consultation
  • User Department without SCM consultation
  • Supply Chain Management (SCM) in consultation with the User Department (correct)
  • SCM without User Department consultation
  • What is the basis for Inventory Management according to the Stocking/Inventory Management Policy?

  • Pre-set min/max reorder level (correct)
  • First come first serve basis
  • Random stock level adjustments
  • Stock level based on employee preference
  • What are project materials restricted for according to the Stocking/Inventory Management Policy?

    <p>Use by the specific project only</p> Signup and view all the answers

    What does the Stock Review process aim to uncover?

    <p>Theft and identify stock shrinkage issues</p> Signup and view all the answers

    What is the objective related to seasonal stock and stock with expiry dates monitoring?

    <p>Monitor seasonal stock and stock with expiry dates in a timely manner</p> Signup and view all the answers

    According to the Stocking/Inventory Management Policy, what should Inventory Management be based on?

    <p>Pre-set min/max reorder level</p> Signup and view all the answers

    Who should be fully involved in any write-off and disposal decisions according to the Stock Review process?

    <p>User departments</p> Signup and view all the answers

    What is one of the objectives related to stock review process?

    <p>Allow for effective inventory management</p> Signup and view all the answers

    What does the Stocking/Inventory Management Policy aim to optimize?

    <p>Stock holding at the most economic cost</p> Signup and view all the answers

    According to the Stocking/Inventory Management Policy, who decides the type and quantum of stock to be held?

    <p>Supply Chain Management (SCM) in consultation with the User Department</p> Signup and view all the answers

    What is the purpose of spare parts returned to operational inventory?

    <p>To be used in the next three years or next turnaround-maintenance</p> Signup and view all the answers

    What does the warehousing policy include?

    <p>Annual Physical Stock Taking (100%)</p> Signup and view all the answers

    What is considered to ensure sufficiency and eliminate excess stock?

    <p>Dependence on current stock levels and consumption patterns</p> Signup and view all the answers

    What do stock review key performance indicators include?

    <p>Compliance with stock review targets</p> Signup and view all the answers

    What is the responsibility of the Supply Chain Manager (SCM) related to warehouse stock balances?

    <p>To keep users informed of warehouse stock balances and consumption patterns during material purchases</p> Signup and view all the answers

    What is included in the warehousing policy?

    <p>Cyclic and perpetual inventory checks</p> Signup and view all the answers

    What happens to excess or unneeded stock according to the text?

    <p>It is communicated to SBUs/CSUs for confirmation and potential transfer or disposal.</p> Signup and view all the answers

    What do user departments provide for required items?

    <p>Justifications and expected future consumption details</p> Signup and view all the answers

    Study Notes

    • The Project Manager and Supply Chain Manager (SCM) review residual material after project completion for potential return to inventory or disposal.
    • SCM keeps users informed of warehouse stock balances and consumption patterns during material purchases.
    • Stock review policies prioritize lean stocking of office consumables and household goods (Just-In-Time).
    • Spare parts returned to operational inventory depend on current stock levels and consumption patterns, or foreseeable use in the next three years or next turnaround-maintenance.
    • Warehousing policy includes cyclic and perpetual inventory checks and annual Physical Stock Taking (100%).
    • Excess and unmoved stock is reviewed on a quarterly basis, starting with high-value items, and in line with management parameters.
    • User departments provide justifications and expected future consumption details for required items.
    • Stock requirements are considered against present stock levels to ensure sufficiency and eliminate excess.
    • Excess or unneeded stock is communicated to SBUs/CSUs for confirmation and potential transfer or disposal.
    • Records of each stock review exercise, including user advice and write-off documents, are maintained.
    • Stock review key performance indicators include compliance with stock review targets and frequency of the process.

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    Description

    Learn about the systematic process for reviewing and disposing of stocks that are no longer required for NNPC Limited operations. Understand the multi-functional approach and involvement of user departments in the write-off and disposal decisions.

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