طرق_وعمليات_المخزون_الجزء_الاول.pptx

‫طرق وعمليات المخزون‬ ‫‪APSC 211‬‬ ‫‪2nd Term‬‬ ‫‪2023 – 2024‬‬ The basis of inventory control Introduction What is inventory? A physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state. Introduction The term inventory means the value o...

‫طرق وعمليات المخزون‬ ‫‪APSC 211‬‬ ‫‪2nd Term‬‬ ‫‪2023 – 2024‬‬ The basis of inventory control Introduction What is inventory? A physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state. Introduction The term inventory means the value or amount of materials or resource on hand. It includes raw material, work-in-process, finished goods & stores & spares.  Inventory Control is the process by which inventory is measured and regulated according to predetermined norms such as economic lot size for order or production, safety stock, minimum level, maximum level, order level etc.  Inventory control pertains primarily to the administration of established policies, systems & procedures in order to reduce the inventory cost.  Introduction Purpose of inventory management How many units to order? when to order? Discount Objective of inventory control       To meet unforeseen future demand due to variation in forecast figures and actual figures. To average out demand fluctuations due to seasonal or cyclic variations. To meet the customer requirement timely, effectively, efficiently, smoothly and satisfactorily. To smoothen the production process. To facilitate intermittent production of several products on the same facility. To gain economy of production or purchase in lots.        To reduce loss due to changes in prices of inventory items. To meet the time lag for transportation of goods. To meet the technological constraints of production/process. To balance various costs of inventory such as order cost or set up cost and inventory carrying cost. To balance the stock out cost/opportunity cost due to loss of sales against the costs of inventory. To minimize losses due to deterioration, obsolescence, damage, pilferage etc. To stabilize employment and improve lab our relations by inventory of human resources and machine efforts. Benefit of inventory control Ensures an adequate supply of materials  Minimizes inventory costs  Facilitates purchasing economies  Eliminates duplication in ordering  Better utilization of available stocks  Provides a check against the loss of materials  Facilitates cost accounting activities  Enables management in cost comparison  Locates & disposes inactive & obsolete store items  Consistent & reliable basis for financial statements  Factors affecting inventory control Type of product  Type of manufacture  Volume of production  Types of Products need to be stored Raw Materials – Basic inputs that are converted into finished product through the manufacturing process Work-in-progress (intermediate products) – Semimanufactured products need some more works before they become finished goods for sale Finished Goods – Completely manufactured products ready for sale Supplies – Office and plant materials not directly enter production but are necessary for production process and do not involve significant investment (Tools and equipment). Types of inventory Cycle stock In- process Dead stock Safety stock Seasonal Stock Promotional Stock Speculative Stock What will happen if the inventory management function has been ignored? One of its function is the planning and here we are losing the opportunity of forecasting or predicting the future demand Losing the opportunity of determining what we already have in our inventory Losing the capacity and available spaces in your warehouse Increased rates of theft Stopping or disrupting production Losses resulting from poor storage Losses resulting from expiration of materials Organizational structure of warehouse management Group 1: Pure inventory duties Receive the item Store item Disbursement of items Determine the limit of stock (Low, re-order, high) Organizational structure of warehouse management Group 2: Warehousing accounting and office workers‫لمكتبية‬HH‫ية وا‬H‫لحساب‬HH‫ية ا‬H‫لمخزن‬HH‫ل‬H‫عما‬ ‫ا‬ ‫ال‬H‫جموعة ا‬H‫م‬ Warehouse records Item cards Store inventory Document review ‫وفقكم الله واعانكم‬