Inventory Control?

Question

I'm in a Precision Engineering Company doing Manufacturing of goods. I understand that there is lots of ways to control inventory but i'm not sure which way to use. Any ideas which is the best Inventory Control Method? and what does inventory consists of? work in process? stock? raw material?

Thanks in advance.

Answer 1

What is Inventory Control?
Inventory or stock represent a large portion of the business investment and must be well managed to maximize profits. The most common problems with inventory are that they are:
- uncontrolled
- inefficient
- costly
- unreliable

Companies usually lean towards keeping inventory levels on the high side to insure stock is available when needed. However, this is a high investment which yields a lower return on the dollar invested. Your inventory control system should enable you to:

- Maintain a proper variety of required items
- Increase inventory turnover
- Reduce and optimize inventory and safety stock levels
- Obtain lower raw material prices through creative supplier networking
- Eliminate obsolete items
- Increase cash flow and working capital
- Reduce storage cost
- Reduce insurance cost
- Reduce taxes
- Reduce downtime

Objective -
To provide superior management over inventory by optimizing inventory stocking levels for excellent customer service and profit maximization.

In a manufacturing environment, inventories include inventories of raw materials, work-in-progress and finished goods.

Answer 2

inventory administration contains issuing purchase requisitions, receiving factors, analyzing factors, issuing against cloth Requisitions, recording receipt situation and balances, and verification of actual inventory. you ought to ask for the technique accompanied in each and every of the above. The administration is performed with the aid of fixing and strictly adhering to the minimum point, optimal point and re-ordering point; with the aid of adoption of financial ordering volume, Coding structures, ABC diagnosis, etc,; with the aid of actual retaining inventory information which incorporate inventory registers, Bin taking part in cards and inventory administration taking part in cards; and with the aid of adoption of perpetual inventory and non-end inventory taking. A. Rajagopalan