Inventory Management Concepts

From UG

Current revision as of 00:09, 27 May 2010

[edit] Glossary

[edit] Inventory

Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.

[edit] Inventory Management Application

Inventory management applications has become a valuable tool for organizations looking to more efficiently manage stock. While the capabilities of applications vary, most inventory management applications give organizations a structured method of accounting for all incoming and outgoing inventory within their facilities. Organizations save a significant amount in costs associated with manual inventory counts, administrative errors and reductions in inventory stock-outs.

[edit] SKU

Stock Keeping Unit (SKU) is a unique combination of all the components that are assembled into the purchasable item. Therefore any change in the packaging or product is a new SKU. This level of detailed specification assists in managing inventory. See http://en.wikipedia.org/wiki/Stock_Keeping_Unit

[edit] Part number

A part number is a unique identifier of a part used in a particular industry. Its purpose is to simplify referencing to that part. A part number unambiguously defines a part within a single manufacturer. See http://en.wikipedia.org/wiki/Part_number

[edit] Build to stock

http://en.wikipedia.org/wiki/Build_to_stock

[edit] Build to order

http://en.wikipedia.org/wiki/Build_to_order

[edit] Typology

• Buffer/safety stock
• Cycle stock (Used in batch processes, it is the available inventory excluding buffer stock)
• De-coupling (Buffer stock that is held by both the supplier and the user)
• Anticipation stock (building up extra stock for periods of increased demand - e.g. ice cream for summer)
• Pipeline stock (goods still in transit or in the process of distribution - have left the factory but not arrived at the customer yet)
  • work in process stock
  • in transit stock

[edit] Types of goods

• Raw materials - materials and components scheduled for use in making a product.
• Work in process, WIP - materials and components that have begun their transformation to finished goods.
• Finished goods - goods ready for sale to customers.
• Goods for resale - returned goods that are salable.

[edit] SKU categorizing schemes

• ABC
• FSN
• VED

see #Janat

[edit] Stock points

Locations where stock could be stored.

[edit] Vendor

A vendor, or a supplier, is a supply chain management term meaning anyone who provides goods or services to a company. A vendor often manufactures inventoriable items, and sells those items to a customer.

http://en.wikipedia.org/wiki/Vendor_(supply_chain)

[edit] Service level

see #Janat

[edit] VMI

VMI - Vendor-managed inventory. See also http://en.wikipedia.org/wiki/Vendor-managed_inventory.

[edit] Related wiki articles

• http://en.wikipedia.org/wiki/Stock_management
• http://en.wikipedia.org/wiki/Inventory
• http://en.wikipedia.org/wiki/Vendor-managed_inventory

[edit] Related books

[edit] Janat

• Supply Chain Management: Text and Cases By Janat Shah (http://books.google.com)

See Managing Material Flow in Supply... chapter

http://books.google.com/books?id=wBjyApjS5R0C&printsec=frontcover&dq=supply+chain+management+shah&lr=&cd=2#v=onepage&q&f=false