Date post: | 04-Jan-2016 |
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PRESENTATION ON
INVENTORY CONTROL
BY DHIRENDER SINGH
B.TECH [ME]
DEFINATION :
“MATERIAL MANAGEMENT IS THE PLANNING ,DIRECTING ,CONTROLLING COORDINATION OF ALL THOSE ACTIVITIES CONCERNED WITH MATERIAL AND INVENTORY REQIREMENTS ,FROM THE POINT OF THEIR INCPECTION TO THEIR INTRODUCTION INTO MANUFACTURING PROCESS”
PURCHASING PROCEDURE
RECEIVING PURCHASE REQUISITIONS
EXPLORING THE SOURCES OF SUPPLY AND CHOOSING THE SUPPLIER
PLACING ORDER
FOLLOW UP
RECIEPT OF MATERIALS
INSPECTIONS OF MATERIALS
CHECKING
INVENTORY CONTROL DEFINITION: PROCESS OF DECIDING WHAT AND HOW
MUCH OF VARIOUS ITEMS ARE KEPT IN STOCK.
FUNCTIONS : DETERMINE ITEM TO BE STOCKED. KEEP SUITABLE RECORDS . WEED OUT OBSOLETE ITEMS . DETERMINE WHEN AND HOW MUCH TO
STOCK AND REPLENISH.
LEAD TIME BY LEAD TIME IS MEANT THE TIME
THAT LAPSES BETWEEN THE RAISING OF THE INDENT BY THE STORES AND THE RECEIPT OF
MATERIALS BY THEM
FIXATION OF STOCK LEVEL
MINIMUM INVENTORY LEVEL [RECORDING LEVEL] - [NORMAL
CONSUMPTION PER PERIOD * AVG DELIVERY PERIOD]
MAXIMUM INVENTORY LEVEL [RECORDING LEVEL + RECORDING LEVEL] AVERAGE INVENTORY LEVEL [MAX +MIN]/2 REORDER LEVEL [MAXIMUM CONSUMPTION DURING PERIOD]
* [MAX PERIOD REQUIRED FOR DELIVERY]
ECONOMIC ORDER QUANTITY
REPRESENTS THE QUANTITY OF AN ITEM WHICH IS MOST ECONOMICAL TO ORDER WHEN FRESH SUPPLY ARE REQUIRED.
IT AIMS TOTAL OF ORDERING AND INVENTORY CARRYING COST WILL BE MINIMUM.
CARRYING COST INVENTORIES CONSIST OF RENT OF STORAGE SPACE,COST OF INSURANCE AND MAINTAINANCE.
EOQ=SQ ROOT(2AS/PC0)WHERE
A=ANNUAL USAGE IN UNITS S=COST OF PLACING AN ORDERP=PRICE OF MATERIAL PER UNIT
C=COST OF STORAGE OF MATERIAL
PERPETUAL INVENTORY CONTROL
REQUIRES A STOCK RECORD OR REGISTER.
REQUISITIONS AND DISBURSEMENTS ARE RECORDED.
PROVIDES AN UPTO DATE RECORD OF INVENTORIES TO REDUCE MISAPPROPIATIONS.
MERITS OF (PIC) PREPETUAL INVENTORY
CONTROL NO NEED OF CLOSING BUSINESS FOR
STOCK CHECKING. CONTINUOS WATCH IS MAINTAINED. BALANCES AND ADJUST BLOCK STOCK
AND ACTUAL STOCK IMMEDIATELY. ELIMINATES,THE ELABORATED COSTLY
PERIODICAL STOCK CHECKING .
PERIODICAL STOCK CHECKING
REQUIRES AN OCCASIONAL COUNT OF STOCK TO DETERMINE INVENTORY BALANCE ON HAND.
THE WAGE OF STORES IS DETERMINE BY ADDING CURRENT RECEIPTS TO THE OLD BALANCE AND SUBTRACTINGH THE NEW BALANCE ON HAND.
INVENTORY MODELS FIXED ORDER QUANTITY
SYSTEM REPLENISHMENT SYSTEM. OPTIONAL OR MODIFIED
RPLENISHMENT SYSTEMS
INVENTORY CONTROL THROUGH ABC
ANALYSIS ITEMS ARE DIVIDED INTO 3 CATEGORIES. CATEGORY A (MAX COST , MINIMUM
CONTRIBUTION TO NUMBER OF ITEMS) CATEGORY C (MINIMUM COST AND
MAXIMUM CONTRIBUTION TO NUMBER OF ITEMS.)
CATEGORY B (IN BETWEEN A AND C)
JUST IN TIME INVENTORY SYSTEM. IN THIS SYSTEM PURCHASE OF MATERIAL
OR GOODS IN SUCH A WAY THAT DELIVERY OF PURCHASED ITEMS IS ASSUMED BEFORE THEIR USE OF DEMAND.
TOO MUCH CARRYING COST IS THERE. TRUST ON SUPPLIERS INCREASE. IT INCLUDES PURCHASE COSTS AND
STOCKOUT COST SO QUITE A REALISTIC APPROACH THAN EOQ MODEL.
INVENTORY CONTROL THROUGH ABC ANALYSIS
GROUP % OF ITEMS % OF COSTS
A 10% 70%
B 25% 20%
C 65% 10%
THANK U FOR PATIENCE LISTENING