Abstract —There are some complex and compelling challenges that global manufacturing industries should face, which includes price fluctuation, supply-chain inefficiencies and increasing customer expectations. In order to meet the demand of this economic environment, manufacturers need to find innovative, smarter ways to face those challenges. Thus, the efficient inventory management becomes urgent to manufacturers and it could help improve profitability and increase customer satisfaction. This paper aims to talk about what inventory management is and its importance, what problems inventory management might have and how to improve inventory management efficiency.
Retailers define inventory as intended sellable assets consisting of goods that are available for resale to customers. Manufacturers also maintain three components of inventory. These include “finished goods” which are goods that have been completed and are awaiting sales. Manufacturers may also have “work in process inventory” made up of goods being manufactured but not yet completed. The third category of inventory is “raw materials,” consisting of goods that are to be used in producing products. Overall, inventory should include all costs that are both ordinary and necessary to put the goods in place and in condition for their resale. For many companies, what they have in inventory represents a major
$1.6 billion, it is an estimation of manufacturers’ and trade inventories in the United States in august 2012 (according to the US Department of Commerce). Inventory represents a significant part of company budgets. They are costly and can be risky, but the company spend a lot of money in inventories because they also provide some security for businesses.
The difference is due to the effect of Sheen’s effort on the demand. This relation is not surprising. Players in the different stages of a supply chain can increase demand for their product through efforts in advertisement, product development etc.
The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and
The Ilarion Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $117,000 of manufacturing overhead for an estimated allocation base of $90,000 direct labor dollars. The company has provided the following data in the form of an Excel worksheet:
A study of inventory management at SARK CABLES LTD is undertaken inorder to know the inventory performance and position of the company and to know the strength and weakness and to assess the profitability of the company. Inventories constitute most significant part of assets of large majority of the companies in India. Inventory a double edged sword is usually an asset of an organization, if not used properly it will become liability. It is therefore absolutely important to manage inventories efficiently and effectively in order to overcome unnecessary investment.
The data can easily loss because they only use a logbook to record their inventory data. With the system, it will help more on the security of the data. Inventory loss hard to detect because admin need to review one by one page in the logbook, but with the system developed, it may help the admin to detect the inventory in and out from the
The current method of apportioning production overheads based on direct labour hours can be described as a traditional approach to product costing. In a manufacturing company’s financial statements, each item produced must be allocated some of the production overheads to make the statements compliant. Sometimes the individual costs of these items can be calculated incorrectly based on overall production overhead and the system of allocating in place, however the overall financial statement can still be accurate. This traditional method of allocating the production
PROJECT REPORT INVENTORY CONTROL & MANAGEMENT at AMTEK AUTO LIMITED Name: Shubham Chugh Roll No.: 1321001517 INSTITUTE OF MANAGEMENT TECHNOLOGY CENTRE FOR DISTANCE LEARNING GHAZIABAD Table of Contents: Chapter 1: About the organisation 1.1 Introduction 10 1.2 Vision & mission 10 1.3 Core values 10 1.4 Amtek group milestones 10 1.5 Global Structure 11 1.6 Products 11 1.7 Major highlights of Amtek group 12 1.8 Customers 13 CHAPTER 2 : Introduction to problem 2.1 Introduction to problem 16 2.2 Objective of project 16 CHAPTER 3: Introduction to inventory management 3.1 Introduction to inventory management 18 3.2 Nature of inventory 18 3.3 Purpose of holding inventory 19 3.4 Objective of inventory management 19 3.5 Valuation of inventory 20 3.6 Benefits of holding inventory 21 3.7 Inventory control system 22 3.7.1 Inventory control 22 3.7.2 Re-order point 24s 3.7.3 Safety stock 24 3.8 Selective inventory control 24 3.8.1 ABC analysis 24 CHAPTER 4: Methodology 4.1 Methodology 27 4.2 Nature of research 27 4.3 Sampling plan 27 4.4 Data collection & data source 27 4.5 Analysis pattern 28 4.6 Flow chart 30 CHAPTER 5: Define Phase 5.1 Define 32 5.1.1 Preparation of project charter 32 5.1.2 Team formation 33 5.1.3 Kick-off project 33 CHAPTER 6: Measure & Analyze