Many companies are overly tied to limited resources, capital, and their primary asset, inventories. To make matters worse, they can tie capital to the wrong type of inventory. Out-of-stock, worn-out, obsolete, wrong size or color, or imbalances between different product lines, reducing customer appeal to the overall operation.
Inventory management systems range from eyeball systems to inventory systems to permanent computer execution systems. Inventory valuations are generally displayed as less than the original cost, market value or current replacement cost.
This method is used to reduce the likelihood of exaggerating assets. The inventory valuation and best accounting practices are book-worthy and are not covered in detail here.
Inventory control involves the purchase, maintenance and disposal of materials. There are three types of inventories that are of concern to managers:
Raw material
Processing or semi-finished products
Finished products.
If a manager effectively controls these three types of inventory, capital can be freed up which can get stuck in unnecessary inventory, productivity control can be improved and they can avoid obsolescence, defect and / or theft.
THE EYEBALL SYSTEM
It is the standard inventory management system for the majority of small retail and many small manufacturing operations and is very important in the application. The store manager stands in the middle of the store or construction site and looks around. If you notice that some items are out of stock, they will be relocated. In retail, the difficulty with eye systems is that particularly good items can be out of stock for some time before notification.
"I'm losing sales all the time I'm out of stock."
Similarly, in small construction works, you may not notice that your inventory of particularly important items is low unless no one is left. Production then has to suffer until the supply of that part is replenished. Such systematic but simple retailers and manufacturers suffer inherent disadvantages.
RESERVE STOCKS
This approach is more systematic than the eyeball system. This includes booking items in stone bottles or brown bags next to inventory, often literally behind the storage area.
When the last unit in the open inventory is used, a brown bag of spare stock is opened and the new consumables contained in it are bottled as open stock. At this point, the readjustment will take place immediately.
If the amount of reserve stock is calculated correctly, the last use of reserve stock is the same way that new cargo arrives.
It is a very easy to use and very efficient system for practically any type of organization. Variations in the reserve stock system simply involve managing the reserve stock itself.
Larger items may remain in inventory but be wrapped in some way to indicate that they are reserve stock and should result in a new order.
PERTUAL INVENTORY SYSTEM
Manual, card-based, and computer-controlled systems include a variety of perpetual inventory systems. In computer controlled systems, the programmed instruction, commonly known as a trigger, automatically passes the order to the appropriate supplier once the supply falls below the specified level.
The purpose of each of the three types of perpetual inventory methods is to match unit use or dollar consumption (or both) of different materials and product lines.
This information helps avoid stockouts and helps maintain a consistent assessment of multiple product sales to see where to emphasize both sales and purchases.
STOCK CONTROL
The inventory management system updates the quantity of each item in the stack. An effective system lets you know what, when and how much to buy for each style, color, size, price and brand. This reduces the amount of lost sales due to a lack of on-demand products.
The system detects items that are selling slowly and helps to indicate changes in customer preferences. Determine the size of your business and the number of employees when developing an effective inventory management plan.
Nowadays, most small establishments, except the smallest, use some kind of on-line ongoing system to record the movement of inventory to and from their facilities.
In a retail establishment, the cashier simply scans the receipt with a reader and the system displays the current price and removes the item from the inventory control system.
It is important to calculate assets of our property in order to present in to tax companies and to have balance of assets at the end of year. With that write material we can see what is for cut of, to get out of use. And we can after that to plan new orders and new stocks of elementary machines and materials and inventory.