Inventory Control Basics

1. Concept

InventoryControl, manage and control resources, keep their reserves at a reasonable level of economy. Economic

Inventory Control is an important part of warehouse management. Warehousing

Inventory Control needs to use information technology , every purchase is recorded, to have a library function, inventory value and market synchronization up and down, to have a production plan, according to production planning and procurement cycle arrangements for procurement. Calculation

Inventory Control to consider the following aspects: sales , arrival cycle , procurement cycle , special season special requirements. Relationship

1. Use

Master inventory dynamics, timely and appropriate order, to avoid over-storage or out-of-stock;

Reduce inventory space consumption, reduce the total cost of inventory;

Control inventory capital consumption, accelerate capital turnover.

3. Problem 3.1 caused by inventory is too large

Increase the warehouse area and inventory storage costs, thereby improving the product cost;

Occupy a large amount of liquidity, resulting in sluggish capital, not only increased the burden of interest payments, but also affect the time value of capital and opportunity income;

resulting in the physical loss and nonphysical wear of finished products and raw materials;

Causes the large amount of idle of enterprise resources, affects its reasonable disposition and the optimization;

Conceal the enterprise production, management of the whole process of contradictions and problems, not conducive to enterprises to improve the level of management.

3.2 Too small

Resulting in a decline in service levels, affecting sales profits and corporate reputation;

resulting in inadequate supply of raw materials or other materials in the production system, affecting the normal production process;

Shorten the order interval, increase the number of orders, so that the cost of order (production) increased;

Affect the balance of the production process and the complete set of assembly.

4. Managing classifications

Quantitative control system

Regular control system

The combination of the two

Inventory Control Basics