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?

Use by the specific project only Signup and view all the answers

What does the Stock Review process aim to uncover?

Theft and identify stock shrinkage issues Signup and view all the answers

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

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

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

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

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

User departments Signup and view all the answers

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

Allow for effective inventory management Signup and view all the answers

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

Stock holding at the most economic cost Signup and view all the answers

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

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

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

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

What does the warehousing policy include?

Annual Physical Stock Taking (100%) Signup and view all the answers

What is considered to ensure sufficiency and eliminate excess stock?

Dependence on current stock levels and consumption patterns Signup and view all the answers

What do stock review key performance indicators include?

Compliance with stock review targets Signup and view all the answers

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

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

What is included in the warehousing policy?

Cyclic and perpetual inventory checks Signup and view all the answers

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

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

What do user departments provide for required items?

Justifications and expected future consumption details 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.