Some of the most important techniques of inventory control system are. The common symptoms of such variations could be excessive inventory, poor product forecasts, insufficient or excessive capacities, poor customer service due to unavailable products or long back. The inventory control system is maintained by every firm to manage its inventories efficiently. Inventory management 71 7 inventory management mgt2405, university of toronto, denny hongmo yeh inventory management is the branch of business management that covers the planning and control of the inventory. Study notes on cost accounting your article library. To that end, management must determine when various items. The objective of inventory management is to have the appropriate amounts of. Inventory concepts, reasons for holding inventory, types of. Inventory management is the subject of this module. Srinivasan, department of management studies, iit madras. Change in specifications requested from the user is easily supported by using the configuration software vsft5.
In the previous chapters, we have discussed priority and. Project and production management, nptel course by prof. Basically, inventory management and control system is a significant componenet of operations management in any company. Applied operations management inventory models revised. Lectures notes on production and operation management vssut. In recent years this search has led to many changes. Discuss types of inventory cost within the materials management forums, part of the publish upload project or download reference project category. Inventory must be viewed as a positive contributor to corporate profitability.
Stochastic inventory systems with the single period stochastic model. Designing a sound inventory control system is in a large measure for balancing operations. The smes were found to use common inventory control strategies such as stock counts, enterprise resource planning erp systems, forecasting, and inventory classification. This is a 90 days plan from 1st oct to 30th december. The following are the common techniques of inventory control.
Forecast demand independently for each item based on usage history establish lot sizes independently for each item based on demand forecasts establish safety stocks independently for each item based on forecast errors which make the following assumptions. Inventory control involves process, procedures, and infrastructure to maintain the inventory at the desired level. Inventory management systems central asset repository of information. How to download all of the lectures in pdf for a course in. Effective inventory management is the result of outstanding inventory control and inventory management. The storekeeper plays an important role in deciding upon the various levels materials. It may be men, money, materials, plant acquisition, spares and. Something similar is required in the inventory design system because unless the assembly. The importance of different inventory control techniques in various situations. In the previous chapters, we have discussed priority and capacity planning and control. The importance of inventory control in business increased dramatically with the increasing. Sku is an individual product that differs from other product some way. Production planning and control pdf notes ppc pdf notes.
Letters and questionnaires were sent to western, eastern, and southern u. Pdf a study of inventory control systems by jamaican. Production planning and control notes pdf ppc notes pdf book starts with the topics objectives of production planning and control, forecasting importance of forecasting. In this post, we will discuss the various methods i have come across in retail industry for inventory control. Inventory control is defined as the supervision of supply, storage and. Senior inventory control analyst page 2 representatives of other departments, divisions, transit agencies, vendors and others as required by project assignment. Data collection system inventory controlsupporting system for inventory control and warehouse operation inventory control system simple system configuration allows for compact installation without worrying about the space. Inventory is considered to be one of the most important assets of a business. At the end of this chapter participants will be able to know. The below given notes will help you for prepare for various competitive examination. Inventory control signifies a planned approach of finding when to shift.
Priority planning determines what materials are needed and when they are needed in order to meet customers demands. Inventory is defined as the list of movable goods which helps directly or indirectly in the production of goods for sale. Inventory control means efficient management of capital invested in raw materials and supplies, work in progress and finished goods. Probabilistic inventory models, where the demand for item fluctuates and. You can find them according to your branch and subject in the below link national mission on education through ict this was initiated by iit madras. As you are aware of the course called the management of inventory systems, it is a 30 hour course with 12. Materials management and inventory control nptel indian. Inventory control is the process by which inventory is measured and regulated according to predetermined norms such as economic lot size for order or production, safety stock, minimum level, maximum level, order level etc. Inventory is an idle resource which is usable and has value. Inventory control study notes for mechanical engineering.
Techniques of inventory control learning objectives. Inventory control inventory models om20 p r o d u c t s i n i n v e n t o r y time q inventory control simple in theory one product, level demand, fixed delivery time etc. Inventory control is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply. The system keeps track of current inventory levels for recipes at the ingredient level, predicts how much inventory is needed for the upcoming week, and generates order forms. Vaidhyasubramaniam,department of management,iit madras. Operations is a transformation process in which the inputs are raw materials and output is the finished goods. Nptel provides elearning through online web and video courses various streams. Inventory control can be defined as the system used in a manufacturing concern to control the firms investment in accounting notes.
This explains the usual saying that inventories are the graveyard of a business. Compilations of study notes from different chapters of cost accounting. In todays lecture we are going to be talking about some basic inventory principles. Hence, an inventory comprises of the buffer of raw material, workinprocess inventories and finished goods. The difference could be in size, color, brand, model, package, function or some other relevant characteristic or combination of these. The inventory control is made by a stockkeeping unit. The restaurant inventory control system is designed to not only assist in this problem, but also automate many of the tedious tasks associated with it. We can also be defined inventory as a comprehensive list of movable items which are required for manufacturing the products and to. Defining inventory control inventory control is defined as the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply. Big variations in demand were a major problem for hps management. Abstract every organization needs inventory for smooth running of its activities. Communicating clearly and concisely, both orally and in writing. In this free online course in inventory management, learn to minimize total inventory holding and ordering costs while maintaining production flow. You will find all pdfs and also as mp3 file for all video lectures which are in nptel.
Inventory is the stock of products that a company manufactures for sale and the components or raw materials that make up the product. Its management needs to be proactive, accurate and efficient. Inventory management is the branch of business management that covers the planning and control of the inventory. A comparative study tom jose v, akhilesh jayakumar, sijo m t scms school of engineering and technology, kochi ii. It is the focal point of many seemingly conflicting interests and considerations both short range and long range. You will visit some inventory control considerations in the operations management course.
Lecture inventory control basics of inventory control. Distribution function or probability density function as pdf. The management of every econo mic sector gained interest after world war ii to study inventory management system due to much risk factor and uncertainty. Through the use of reports generated from the inventory. One is called a transactions and file maintenance module. Nptel online certification courses since 20, through an online portal, 4, 8, or 12week online courses, typically on topics relevant to students in all years of higher education along with. Spare parts planning and control for maintenance operations. Executive summary our proposed project is a real time implementation of an inventory control system for an onsite corporate restaurant management and catering company. If you are preparing for civil service examination, these notes will definitely help you to get an overall idea about the subject. Operations research in production planning, scheduling, and inventory control, d. That is knowing, what products are out there, have much you have each item and where it is. Inventory management and control system is a broad concept that deals with the process of acquiring buying materials from suppliers, handling storing it in a designated warehouse, and issuing it to production or retailers depending upon the nature of the bysiness. A study of inventory control in the railway industry was done through library research and personal interviews. Inventory control involves managing the inventory that is already in the warehouse, stockroom or store.
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