Logistics. Inventory management systems and methods (most important)

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Logistics. Inventory management systems and methods (most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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31. SYSTEMS AND METHODS OF STOCK MANAGEMENT

Inventory functions that provide flexibility in the customer service system:

1) accumulation of products with subsequent distribution;

2) protection against price changes and inflation;

3) cost management by using a price discount that depends on the size of the order.

Inventory management system - a set of rules and indicators that determine the time and volume of purchases of products to replenish stocks. Skillful and thoughtful inventory management is one of the conditions for increasing the efficiency of trading activities.

Inventory management system parameters:

1) order point - the minimum (control) level of stocks of products, upon the occurrence of which their replenishment is necessary;

2) the standard level of stocks - the estimated value of stocks, achieved during the next purchase;

3) volume of a separate purchase;

4) frequency of purchases - the duration of the interval between two possible purchases of products, i.e. the frequency of replenishment of stocks of products;

5) the replenished quantity of production at which the minimum cost of holding the stock is achieved for a given cost of replenishment and a given opportunity cost of invested capital.

Stages of the inventory management process:

1) forecasting the possible use of product stocks:

▪ monitoring the actual use of product reserves;

▪ monitoring of actual costs for replenishing product inventories;

▪ monitoring the time required to create inventory through delivery or production (delivery time or production time).

Main indicators of inventory management:

1) the level of stocks of products - characterizes the security of the enterprise with stocks on a certain date and shows how many days of trade (with the current turnover) this stock will last;

2) the rate of turnover of stocks of products - the ratio of the volume of stocks of products to the volume of products sold for a certain period;

3) inventory turnover - the time interval (in days) between the receipt of products at the warehouse and the release of materials into production, as well as between the receipt of products at a trading enterprise and its sale;

4) inventory turnover rate - an indicator that characterizes the number of sales of products for a certain period (usually a year);

5) inventory turnover ratio - shows how often stocks are turned over or sold while ensuring the current sales volume of products. This coefficient characterizes the efficiency of the procurement, production and marketing system at the enterprise.

Inventory control system - detailed accounting of raw materials and products used in the production process, non-manufacturing materials, such as consumables, office supplies, as well as items for maintaining and repairing premises and equipment.

Reserve estimation method to average is based on the calculation of the average cost of inventory. "Weighed" the number of stocks of products purchased bathed at different prices.

Piece valuation method used to account for items such as cars and unique paintings, expensive jewelry and custom-made furniture.

Author: Shepeleva A.Yu.

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