Inventory Management Concepts

From UG

(Difference between revisions)

Revision as of 00:07, 27 May 2010

Glossary

Inventory

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

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.

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

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

Build to stock

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

Build to order

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

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

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.

SKU categorizing schemes

ABC
FSN
VED

see #Janat

Stock points

Locations where stock could be stored.

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)

Service level

see #Janat

VMI

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

Related books

Janat

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

@@ Line 30: / Line 30: @@
 * 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
 === Types of goods ===