INVENTORY CONTROL
Inventory control is a process in which an organization to track the product and ensure the physical product is calculated in accordance with what is recorded. Inventory control is an important part of the manufacturing process, and it is very important to check the goods have reached where, in stock now, and details of suppliers. Inventory control is the implementation of inventory policies in a way that ensures that the supply of the service are met. Inventory Control tracking system that provides information up to date on each item in stock. Inventory control is one of the key components of Just In Time manufacturing processes.
Inventory control to help improve your return on investment by maintaining accurate records of stock on hand and in order to give information.
Other future technologies that may eventually play a role in asset management and inventory control RFID. RFID technology has recently been used to improve management control system of inventory control. Inventory Control will calculate the average unit cost as they enter and leave the inventory.
"Inventory Control" focuses on the process and accountability of inventory movement. This consists of security and a strict process in terms of:
· Physical and systemic movement of materials
· Physical inventory and cycle counting
· Measurement accuracy and tolerance
· Good Accounting Practices
"Inventory Management" focuses on the inventory as an asset or a means of value creation. Inventory is managed to maximize the value, exposure, and / or profits and minimize costs and expenses. This consists of:
· Selective product placement
· Velocity and the calculation was the construction
· Inventory reduction and rationalization of products
· MRP
Policies related to inventory control inventory levels should be maintained and which vendors will supply inventory. How and when supply will be refilled, how the inventory records are created, managed, and analyzed, and what aspects of inventory management will be outsourced are also important components of proper inventory management.
Inventory Management Systems
Ongoing analysis of both supply management and manufacturing processes has led to innovative management systems, such as just-in-time inventory or economic order quantity decision model.
Just-in-time inventory is a process developed by Japan based on a process invented by Henry Ford. David Wren (1999) descibes how the process started:
Henry Ford managed to cut inventories with forty million dollars by changing how he obtained materials to produce cars. Through a process called vertical integration, Ford bought the mine and smelting operation to better control the source and supply materials to produce cars. In this way, he was able to reduce standing inventory and increase turnover. In the 1950s, Taiichi Ohno, a mechanical engineer who worked for Toyota Motorcar Company, was a smooth process of what we know today as the Just-in-Time inventory.
This is a technique that was developed to maintain a minimum inventory in accordance with production schedules and marketing forecast.
Basically there are three aspects in which the technique was framed inventory control, namely:
1. Number of different items (the reduction)
2. control the quantity of various items.
3. The cost of each item.
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