- Administering the amount of inventory and safety stocks required to meet or exceed current actual customer demands. This process includes proper planning, adequate stock positioning, monitoring of stock levels, and ensuring of product availability at the point of need to meet current demand.
- The process of ensuring the availability of products through inventory administration.
- Inventory goods and materials, or those goods and materials themselves, held available in stock by a business. It is also used for a list of the contents of a household and for a list for testamentary purposes of the possessions of someone who has died.
- ABC analysis is a business term used to define an inventory categorization technique often used in materials management. It is also known as Selective Inventory Control.
- The classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.
- Method by which medicines are divided, according to their annual usage (unit cost times annual consumption) into class A items (the 10 to 20 percent of items that account for 75 to 80 percent of the funds spent), class B items (with intermediate usage rates), and class C items (the vast majority
abc analysis in inventory management – Raw Material
Corrective Actions in The Lean Machine – Document, Quality, and Inventory Management Software for ISO 9001
abc analysis in inventory management
I. Introduction and Meaning
1.2 Types of Inventory
1.3 Inventory Management
1.4 Objectives of Inventory Management
2. Basic Inventory Decisions
3. Relevant Inventory Costs
4. Inventory Control Methods
5. Just In time
6. ABC Analysis
7. Material Requirements Planning
8 Economic Order Quantity
9 Measures of Efficiency of Inventory Management
10. Costs associated with Inventory
11. Problems -Solutions
Explanation of Point 11:
11.1 Fisk Corporation is trying to improve its inventory control system and has installed an on-line computer at its retail stores. Fisk anticipates sales of 75,000 units per year, an ordering cost of $8 per order, and carrying costs of $12.0 per unit. What is the economic ordering quantity? How many orders will be placed during the year? What will the average inventory be? What is the total cost of ordering and carrying inventory?
11.2 Answer the following questions based on the attached 2010 Heinz financial statements. All questions can be answered from the statements and the first footnote (pp. 40-48). For each question, state where the information was found. Show any necessary calculations.
1.What is Heinzâ€™ fiscal year?
2.What method does Heinz use in valuing inventory?
3.Compute inventory turnover for 2010.
11.3 Euros, denoted as “E”)
Freight In……………… E8,000
Sales discounts…………. 4,000
Purchase returns…….. 7,000
Inventory Sales…………………. 400,000
December 31, 20X1….. 20,000
Purchase discounts…. 3,000
December 31, 20X2….. 30,000
Sales returns…………. 8,000
Administrative Expenses 20,000
Balance Sheet – December 31, 20X1
Owner’s Equity 30,000
Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)
Net sales revenue
Cost of goods sold