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Copyright InternationalTradeCentre 1 2 20 2020 ManagingInventory GaoYongzheng Copyright InternationalTradeCentre 2 2 20 2020 ThisModulewillhelpyouto Forecastinventoryrequirements Optimiseinventorylevel Buildanintentorymanagementplan Design Managewarehouseoperations Increasetraceability reducepartsvariety Copyright InternationalTradeCentre 3 2 20 2020 ContentOverview Unit1Introduction Unit2WarehouseandInventoryOperations Unit3ManageandForecastingInventory Unit4InventoryPlanning Unit5WarehousePlanningandSystems 5Units Copyright InternationalTradeCentre 4 2 20 2020 Unit1Introduction Whatisinventory Whykeepinventory WhatisinventoryManagement Whyisitimportant WhatdoesinventoryManagementinclude Copyright InternationalTradeCentre 5 2 20 2020 Whatisinventory Inventory orstock asitisalsocalled isdefinedinsupplymanagementasthestoredaccumulationofmaterialresourcestobeusedinatransformationprocess Itincludes Rawmaterials theinventoryofindividualingredientsorcomponentsusedinproduction Workinprocess WIP theinventoryofpartiallyproducedproductsatvariousstagesinthemanufacturingprocess Finishedgoods completedproducts orproductsthathavebeenmanufactured Copyright InternationalTradeCentre 6 2 20 2020 Whykeepinventory Anenterprisemayholdinventoriesformanygoodreasons themostcommonofwhichistobeabufferinthesupplychain Copyright InternationalTradeCentre 7 2 20 2020 Whykeepinventory cont Thespecificreasonsincludes Preventfromshortageofgoods Quickdeliveryandraisecustomersatisfaction Continuousorbest scalebatchproduction Lessenpurchasetimesandtherelatedcost Purchasepriceadvantage Andsoon Copyright InternationalTradeCentre 8 2 20 2020 WhatisinventoryManagement InventoryManagementissimplythewaythattheaccumulationoftheinventoriesisoptimizedsothatthebusinesscansatisfyitscustomers sdemandsforthedeliveryofarequiredquantityofproducts attherighttimeandtheminimumcosttobusiness Copyright InternationalTradeCentre 9 2 20 2020 WhatdoesinventoryManagementinclude Analyzingthebuild upandevaluatingtheneedforkeepinginventoryinthesupplychain Forecastingdemandformaterialsandcomponents Developmentofinventorymonitoring Supplyplanningandcontrolmechanisms Alsodealingwithphysicalinventoryhandlinglocationsandfacilities Copyright InternationalTradeCentre 10 2 20 2020 Whyisitimportant InventoryManagementwillhavesomeveryimportanteffectson Customerservicelevel Smoothproduction Cost profit Cashflow Andsoon Soinventorymanagementisveryimportantinacompany Copyright InternationalTradeCentre 11 2 20 2020 RecallandSummary Whatisinventory Whykeepinventory WhatisinventoryManagement Whyisitimportant WhatdoesinventoryManagementinclude Copyright InternationalTradeCentre 12 2 20 2020 Nowthatinventorymanage mentisveryimportanttoacompany thenHowtodoitwell Ithink thefollowingunitswilltellussomegoodanswers Let sgoontoUnit2 Copyright InternationalTradeCentre 13 2 20 2020 Unit2WarehouseandInventoryOperations Mentoringmovements Measuring evaluatinginventory Receipt issueofinventory Systemstoreplenishinventory Howmuchtoorder Copyright InternationalTradeCentre 14 2 20 2020 Mentoringmovements Foreachlocationwherematerialsareheld stockrecordbalancesneedtoaccuratelyreflectwhatisphysicallyininventory Inaddition inventorybalancesheldintheaccountingrecordsneedtobecapableofbeingreconciledwithphysicalstockcountsundertakenduringauditandperiodicstocktakingactivities Somentoringmovementsisnecessarytokeeptheinventorybalancestobecorrect Copyright InternationalTradeCentre 15 2 20 2020 Receipt issueofinventory Notificationofgoodsreceipt Receiptofcopyofpurchaseorder Acknowledgement Schedule plandelivery Delivery Storage putaway Inspection Unloading Receipt Copyright InternationalTradeCentre 16 2 20 2020 Receipt issueofinventory cont Costallocation Userdeterminesrequirement Requisitionauthorized Presentedtostores Identificationofthegoods Adjustmentofstockrecords Delivery collection Picking Issue Copyright InternationalTradeCentre 17 2 20 2020 Systemstoreplenishinventory Re orderlevel fixedorderquantity variableorderinterval Periodicreview fixedorderinterval variableorderquantity Demand drivenleansupplysystems ordersplacedintheprecisequantityandtimerequiredforproduction Copyright InternationalTradeCentre 18 2 20 2020 Howmuchtoorder Balanceamongstthecostofholdingstock shortagecostandpurchasingcost orderingcost carryingcostandfindouttothemosteconomicorderquantity EOQ ThecommonformulatocomputeEOQis EOQ Squareroot 2Co D Pi Copyright InternationalTradeCentre 19 2 20 2020 Recallandresume Mentoringmovements Measuring evaluatinginventory Receipt issueofinventory Systemstoreplenishinventory Howmuchtoorder Copyright InternationalTradeCentre 20 2 20 2020 Unit3Managingandforecastinginventory Lead timemanagement Enterpriseresourcemanagement Demandforecastingtechniques Copyright InternationalTradeCentre 21 2 20 2020 Unit4InventoryPlanning Servicelevelpolicies Categorisationtechniques Traceability varietyreduction Codingsystems Insurance Copyright InternationalTradeCentre 22 2 20 2020 Unit4InventoryPlanning cont Debentureorloansecurityclauses Theinventorymanagementplan Performanceanalysis reporting Disasterrecoveryplanning Copyright InternationalTradeCentre 23 2 20 2020 Unit5Warehouseplanningandsystems Warehouselocation acquistionoptions Warehousedesign Warehouselayout Materialhandling equipment Warehouseoperations Recordkeeping communication Internationalqualitystandards Copyright InternationalTradeCentre 24 2 20 2020 Reviewandsummary Unit1Introductionaboutinventorymanagement Unit2WarehouseandInventoryOperations Unit3ManageandForecastingInventory Unit4InventoryPlanning Unit5War
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