INVENTORY CONTROL Reena Vincent Professor JMCON

Transcript:INVENTORY CONTROL Reena Vincent Professor JMCON:
INVENTORY CONTROL Reena Vincent Professor JMCON Central objective At the end of teaching students acquire depth knowledge on inventory control and able to explain and apply this knowledge in the nursing service and education . Specific objectives At the end of the class student will be able to Define inventory, inventory control List the objectives of inventory control Identify the importance of inventory control Explain maintaining inventory control and inventory standards Describe the various techniques of inventory control. Describe the inventory accounting system introduction The inventory is a stock to ensure uninterrupted suppliers and to have future economic value . It provides a cushion between the estimated and actual demand for materials. Inventory is anything that is bought and held prior to use Inventory means all the materials, parts, supplies, expenses and in processes or finished products recorded on registers books by an organization and kept in its stocks for some period of time. Inventory control Inventory control is the process by which inventory is measured and regulated according to predetermined norms such as economic lot size for order, safety stock, and minimum level, Maximum level, order level etc. objectives of inventory control To supply the materials in time . To give maximum clients service by meeting their requirement timely, effectively, efficiently, smoothly and satisfactorily. To reduce or minimize investment in inventories . Contd.... To minimize idle time by avoiding stock out and storages . To avoid shortage of stock . To minimize the losses due to deterioration, obsolescence and damage of stock. To meet unforeseen future demand . To average out demand fluctuations . To balance various inventory costs such as carrying cost, order costs etc. Importance of inventory CONTROL It provides and maintains good customer’s service. Enables smooth flow of materials through production process. Provides protection against the uncertainty of demand and supply. Ensures a reasonable utilization of equipment and effort . Possibility of discount, if purchased in bulk. To provide gap between forecasted and actual demand for a material. To have optimum level of inventory; not too large, not small. To eliminate duplication in ordering To take care of fluctuations in demand and lead time and price in bulk buying To minimizes the transportation cost, inventory costs and waiting time . It monitors the loss of material and utilization of stocks available . To facilitate the cost accounting activities and disposes inactive and obsolete store items .