Finals Flashcards
(94 cards)
these are goods that a company handles with the intention of selling
inventory
for most this is tangible but it also could be intangle (software, database, etc)
Inventory
is the overall approach of handling imventories through reports, analysis, and stock facilitation
Inventory management
Is a sub-activity of inventory management that focuses on governing stocks on hand, making sure that the levels of inventory meets the demand and schedule
Inventory control
Elements of inventory control
inventory planning
Establishing order cycles
Balancing stock
Tracking inventory
Setting up streamline where the new inventory comes in while the old stocks depletes. This includes up to date ahipping and receibing data
inventory planning
Demand is unpredictable, so is inventory. In order to avoid shortage, inventory control methods to use must fit the operation type of a business
establishing order cycle
Inventories should be balanced in order To avoid surplus or shortage and lead to even higher cost
balancing stock
the most important component of inventory control is keeping an Accurate count of the inventory that is accessible as projected such data
tracking inventory
Challenges of inventory control
Setting up systems to track and record inventory
Receiving
Reconciliation of inventory records and others
Costing prepared or processed items
Cost associated with maintaining inventory
Other factors affecting inventory controls
production control
Purchasing methods
Purchasing order chart with par levels
Listing the details od inventory needed such as names of items, unit, and required quantitiy
production control
It depends on the ownership ans size of the organization
Purchasing policies and procedures
(Purchasing methods)
Basically working with suppliers to identify the appropriate products, ordering the correct quantity, and then receivibg and storing the products
informal purchasing
getting the best price price for the quality of the product desired is just as it’s called - informal
formal purchasing
An arrangement is made with a supplier to purchase all of a certain kind of supply at a specific percentage mark-up over the supplier’s cost
cost-plus buying
Is a term used to describ the amount of a particular item required to meet an operations needs during a specific period of time
Par stock
3 main things you need to know in par stock
- Amount required (par level(
- Amount on hand
- Amount to order
Using inventory control system
periodic inventory control system
Perpetual inventory control system
Inventory control techniques
System pertains to recurring count of goods at specific intervals
Perciodic inventory control system
It provides an accurate count on inventory level in real time
perpetual inventory control system
It classifies stocks based on their importance, price, sales volume.
It allows business to minimize cost if carrying the products while miximizing their stock returns
ABC Analysis
A-high class
B-medium class
C-low class
Using this method, the warehouse puts out the most recent batch of items to the customer’s first.
LIFO
This technique, the warehouse prioritizes oldest stocks for processing and shipping.
FIFO
