inventory management latest

8/7/2019 Inventory Management latest

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Presentation

InventoryManagement

Preparedby

BUB0910017Aru

nSuresh

BUB0910018Afz

alMatathil

an

eepoer

ProductionPla

nningandCon

trol

M.Sc.(Engg)Engineeringandmanufactur

ingmanageme

nt

M.S.Ramaia

hSchoolofAdvancedStudies

1

1

M

oduleleader:K.N

.Ganapathi&V

ijayaKumar


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Aimand

Objectives

A

im:

O

bectives:

Toknowab

outtheelement

sofInventoryM

anagement

Tostudyaboutvariousinv

entorycontrols

ystems

Toknowab

outtheneedofinventory

TostudyaboutITintegrationinInventoryManagement

TostudythetipsforInventoryManagement

Toknowab

outpurchasingplanforInventoryManagemen

t

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WhatisInventory?

Anystockofitemswhicharekepttomeetthefuture

demandcanbecalledasinventor

TypesofIn

ventory[1]

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NeedofInventory

Tomeetvariat

ionsincustome

rdemand

.

2.Smooth

seasonalorcyc

licaldemand

rcngeae

1.Temperorypricediscou

nts

.egeagansprcenc

reases

3.Takead

vantagesofpricediscounts

rocess

up

pysurprse

1.Internal

upsetsinparts

2.Externa

ldelayinincom

inggoods

3.Transitdelays[2].

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W

hyInvento

ryManage

ment

Tomaintaina

nadequatesupplyofgoodswh

ileminimizing

inventorycosts

.

Toanswerthecriticalquestion,howmuch?When?

oaceven

ventoryproportonaty.

Inventoryma

nagementhelpsthecompanytointegratethe

followingfunctions

Strateicoals.

Salesfo

recasting.

aesanoperatonsp

annng.

Productionandmateria

lrequirementp

lanning

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[3],[4],[5

].


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M

easuresofInventoryControl

ReturnOn

Investment(ROI)

ROI=SalesCostofgoo

dssold

Phy

sical+Receivab

les+Inventory

Customerservicemeasure

s4

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CostInvolv

edinInventory

Holdingorcarryingcost

SetuporO

rderingcost

Stockoutcost[4]. M

.S.Ramaia


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Ste

psforControllingInv

entory

1.InventoryPlanning

Toiden

tifythebestmix,quantityandlocationof

nventory.

Toensureequipmenta

vailabilityandefficiency.

2.EstablishO

rderCycles

xeorerquanttym

oe.

Fixedo

rderintervalmodel.

Economicorderquantity.

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Ste

psforControllingInv

entory

3.Balanceinventorylevel

Istheinventorylevels

uitabletoserve

themarket?

.

Addres

singfinancialandmarketrelatedissuesto

determinetheidealinventorylevel.

.evewsoc

s

Tokeeptheinventoryleveluptodate.

Toiden

tifyobsoletein

ventory.

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Ste

psforControllingInv

entory

5.Follow-UPa

ndControl.

Periodicreviewofinventory.

-

.

Toknowhowmuchan

dwhentoorder.

Toreviewcurrentorde

ringsystem[5][6].

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InventoryManagementSo

ftware

Itisacomputerbasedsyste

mfortrackingproductlevels,

,

.

Components:

Assettracking.

ServiceManagement.

Softwares:

Oraclee

-businesssuit.

SAPER

P[7][8]. M

.S.Ramaia


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InventoryManagementSo

ftware

Importantfeatures:

Inventorycosting.

Automated

datacollectionsstem.

Orderprocessing.

temtracng.

Returnmanagement.

Locationtr

ansfer.

.

Businessnotifications.[8],[9].

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Purchasing

plansinIn

ventorymanagement

Oneofthemainaspectofin

ventorycontrolistohaveitemin

s

tockatthemom

enttheyaren

eeded.Thema

inconsiderationsin

Whencommitmentshouldbeplaced

Whenfirstdeliveryshouldbe

received

Whentheinventorshouldbe

eaked

Whenreordershouldnolonge

rbeplaced

Whentheitem

shouldnolong

erbeinstock

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Developm

entinInve

ntorymanagement

Themajortwoapproachesw

ithinmanufacturingoninven

tory

--

T

ime(JITandK

anban).

MRP-Aninformationsystemwhichconvertsalesdirectly

into

oa

on

ac

y

ysu

un

an

mepero.

aeras

are

s

cheduledmore

closelywhichreducesinventory

andshorter

d

eliverytime.

-

worsoemnae

nvenoresra

er

anopm

zng

them.Herethe

inventoryofR

M

&WIPfall

stothatneede

din

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s

ingleday.Itisd

onebyreducingthesetuptime

andleadtime.


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TipsforbetterInventorymana

gement

Atthetimeofdeliveryverifythequantityisasperthedelivery

receiptandcarefullyexaminefo

ranyvisibleda

mage.

p

ointreceived,thenreportdam

ageandrequestinspection.Report

thedamageandconfirminwriting.

Insectionof

damaeditemsand

rearesdamaere

ort

v

erifythereport

clearlybefores

igning.

Afte

inspect

iondamaged

materialshouldnotbeusedor

d

isposedwithoutpermission[10

].

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InventoryManagementB

enefits

Reducespurchasingandinventorycosts.

Transparentinventoryproc

esses.

.

Reducetim

etomarket.

Warehouseorganization.

Free-us

ace.

Facilitatesvendor-managementinventory

[11].

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Con

clusion

Inventorym

anagementis

veryimportanttoanytype

of

industrieswhetherproductandserviceoriented.Investmentsin

rawmatera,

,spareparts,

nsego

osarea

crtca

costwhichifnotcontrolledc

anleadtohigh

capitalcost,h

igh

operatingcost

anddecrease

productionefficiency.Intodays

proventobemostcriticalandalmostallf

unctionlikesa

les,

engineeringan

daccountinghaveanimpactandimpacted

by

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.


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Reference

TypesofInventory,http://www.rajeshtemani.com,n30thMarch201.

nventoryManagement,iimm.org/knowledge_bank/6_purpose-of-inventory-t.htmRetrievedon30

thMarch2011.

PurposeofInventoryManagement,.iimm.or/knowledebank/6urose-of-inventor- __nt.htm,Retrievedon30thMarch2011.

athi.K.N.,ProductionPlanninandControllin,CourseRamaiahSchoolofAdvancedStudies,Bangalore,March

Inventory,http://en.wikipedia.org/wiki/Inventory,

n30thMarch2011.

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[7].Unknown.,Q

uickBooksInventory:AccountingIn

tegrationSupport,

http://www.smartturn.com/solutions/quickbooks-inventory-

.

,

.

[8].Unknown.,InventoryManagem

ent,

.

.

y%20Chain/Fact%20Sheet%20-

%20Inventory%20Management.pdf,Retrievedon30thMarch2011.

[9]Unknown.,InventoryManagem

entSoftware,

http://en.wikipedia.org/wiki/Inventory_management_software,

Retrievedon30thMarch2011.

[10]Unknown.,InventoryManagement,

http://www.scribd.com/doc/296110/Inventory-Man

agement,Retrieved

30thMarch2011.

[11]Lean,Harm

s,TheAdvantagesofanInventoryManagementSystem,

Retrievedon30thMarch2011.

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