finalsss Flashcards
These are goods that a company handles with the intention of selling.
Inventory
This comes in tangible or intangible form.
Inventory
types of inventory
- raw materials
- works-in-process,
- finished goods,
- maintenance,
-repair, and - operations (MRO) goods.
it is the overall approach of handling inventories through reports, analysis, and stock facilitation.
Inventory management
it 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
Setting up streamline where the new inventory comes in while the old stocks depletes. This includes up-to-date shipping and receiving 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 Cycles
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 projecting such data is difficult without routinely maintained inventory counts.
Tracking Inventory
Challenges of Inventory
- Setting Up Systems to Track and Record Inventory
- Receiving
- Reconciliation of Inventory records and orders
- Costing Preparation or Processed Items
- Costs Associated with Maintaining Inventory
Listing the details of inventory needed such as names of item, unit, and required quantity.
Production Control
it vary depending on the ownership and size of the organization. In health care facilities and large school districts, it is common to have centralized purchasing of all materials and supplies—including food—done by one department.
Purchasing policies and procedures
Basically working with suppliers to identify the appropriate products, ordering the correct quantities, and then receiving and storing the product.
Informal purchasing
Getting the best 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 describe the amount of a particular item required to meet an operation’s needs during a specified period of time.
Par stock
Three (3) main things you need to know under par stock
1.Amount required (par level)
2.Amount on hand
3.Amount to order
it pertains to a recurring count of goods at specific intervals. In this system, warehouse managers manually count their inventory on a monthly, quarterly, or annual basis.
periodic inventory control system
it provides an accurate count of inventory levels in real-time. It utilizes technology, such as barcodes and Radio Frequency Identification (RFID) tags, for tracking products.
perpetual inventory control system
in inventory control classifies stocks based on their importance, price, and sales volume.
ABC analysis
Just as its name suggests, it consists of the following categories:
A class=
B class=
C calss=`
A class – expensive, high-class items with tight controls and small inventories
B class – average-priced, mid-priority items with medium sales volume and stocks
C class – low-value, low-cost items with high sales and huge inventories
the warehouse puts out the most recent batch of items to the customers first. Doing so prevents products from going bad when delivered to the market.
LIFO method
the warehouse prioritizes older stocks for processing and shipping. This way, they can keep the products fresh when the customer receives them.
FIFO technique
is also a great way of organizing stock items in a warehouse facility. In this method, goods of the same production date and materials are grouped together.
Batch tracking
