TUTORIAL 4: INVENTORY MANAGEMENT (3. Five Costs (:bulb: Human Capital-…
TUTORIAL 4: INVENTORY MANAGEMENT
:unlock: Activity employed in maintaining the optimum number or amount of each inventory item.
:unlock: The practice to manage, supervise and control the actions related to ordering, storage also components used by the company in the production of products sold.
:unlock: Look after the quantity of products available for sale is the primary key as an investment and asset inventory until the items are sold.
:unlock: Management of material include receiving, purchasing, and surplus disposal.
4. Three Service Classes
- Goods can customized for particular customers and delivery according to agree delivery times. eg:
- Product needed within reasonable time frame but not necessary urgent. eg:
computers, building, materials, household
- Product needed quickly. eg:
3. Five Costs
- available to generate material wealth for an economy or a private firm. The resources include knowledge, talents and skill.
as a depreciation and use allowances, interest on debt associated with certain buildings, equipment and capital improvements, operation and maintenance expenses, and library expenses.
The costs associated with administration of an enterprise, including salaries, informatics support, tangibles and intangibles, which are required to maintain the enterprise but do not contribute to the products or services that comprise its proprietary objective(s).
The act of obtaining, acquiring, buying goods, services or works from an external source, often via a tendering or competitive bidding process. The process includes preparation and processing of a demand as well as the end receipt and approval of payment.
Interest and other costs that an entity incurs in connection with the borrowing of funds. The total expenses associated with securing finance for a project or business arrangement.
:check: Stock Keeping Unit
:check: ID Labels
:check: Units of Measure
:rolled_up_newspaper: Push - the ability to order or make products as they are requested by customers.
:rolled_up_newspaper: Pull - products are manufactured or ordered in advance to meet anticipated demand.
5. Strategies For Better Manage Inventory
The postponement strategy is one of the characteristics of demand forecasting. It dictates that the firms should postpone the creation or delivery of the final product as long as possible. For examples in retailers segment, this takes the shape of postponing the delivery of the final product to its destination, while for assemble-to-order manufacturers this means postponing the final assembly of the product.
Vendor Managed Inventory
Vendor managed inventory is a supply chain management strategy in which a supplier manages goods that are located in a customer's warehouse. The goods can be consigned or non-consigned stock. The consigned stock is owned by the supplier until the customer consumes it, and the non-consigned stock is owned by the customer when the customer receives it.