ABC ANALYSIS IN INVENTORY MANAGEMENT

ABC ANALYSIS IN INVENTORY MANAGEMENT

Abc Analysis In Inventory Management

    inventory management

  • 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

  • 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

abc analysis in inventory management – Raw Material

Raw Material Inventory Reduction In An Automobile Assembly Plant: An application of Multi-Criteria ABC Classification, Fill Rate Analysis, Min-Max Model & Vendor Scheduling
Raw Material Inventory Reduction In An Automobile Assembly Plant: An application of Multi-Criteria ABC Classification, Fill Rate Analysis, Min-Max Model & Vendor Scheduling
Inventory ties up working capital and incurs holding cost which reduces profit for every excess stock held. In large organizations, the cost associated with inventory can run into millions of dollars. So there is always a need for determining an optimum inventory level so that it can avoid under-stocking and overstocking. The work in the dissertation shows how simple inventory management approach can minimize the inventory investment. It shows the application of Multi-Criteria ABC classification, Min Max inventory model, service level calculation and vendor scheduling along with the conceptualized literature review. The book can be of great help to supply chain professional in the field of inventory management.

Corrective Actions in The Lean Machine – Document, Quality, and Inventory Management Software for ISO 9001

Corrective Actions in The Lean Machine – Document, Quality, and Inventory Management Software for ISO 9001
How to manage Corrective Actions in The Lean Machine – Document, Quality, and Inventory Management Software for ISO 9001. Visit theleanmachine.com today for your free demo!

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abc analysis in inventory management

Learn about Inventory Management
TABLE OF CONTENTS

I. Introduction and Meaning
1.1 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 Heinz’ fiscal year?
2.What method does Heinz use in valuing inventory?
3.Compute inventory turnover for 2010.
11.3 Euros, denoted as “E”)
Purchases…………………
E250,000
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
Cash 10,000
Inventory 20,000
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
Gross profit
Net income

Written by abcanalysisininventorymanagementcre

December 9, 2012 at 9:18 am

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