Inventory Management Concepts
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=== Build to order === | === Build to order === | ||
http://en.wikipedia.org/wiki/Build_to_order | http://en.wikipedia.org/wiki/Build_to_order | ||
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| + | === 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) | ||
| + | |||
| + | === 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. | ||
=== VMI === | === VMI === | ||
Revision as of 23:41, 26 May 2010
Contents |
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)
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.
VMI
VMI - Vendor-managed inventory. See also http://en.wikipedia.org/wiki/Vendor-managed_inventory.
Related wiki articles
- http://en.wikipedia.org/wiki/Stock_management
- http://en.wikipedia.org/wiki/Inventory
- http://en.wikipedia.org/wiki/Vendor-managed_inventory
Related books
- Supply Chain Management: Text and Cases By Janat Shah (http://books.google.com)
