Task 11 : ChECk InVENtory

There must be some form of control where inventory is kept in order with high level of accuracy. 

Businesses could keep:

                1. Forecasted quantity of products (MTS)

                2. Made to order (MTO)

Among the advantages & disadvantages between the two methods of keeping stocks:

1.       Made to Stock

ü  Advantage:  Product available when customers order.

ü  Disadvantage: High value stocks.   Product may not be sold due to obsolesce.

2.   Made to Order

ü  Advantage : Minimum value stocks

ü  Disadvantage: Product not available during customer order.  Long lead time

Where do we find the quantity of inventory required by customer?

ü   Files

ü   Excel

ü  System

ü  Store

ü  Bin card

Check raw material Inventory

       Once it is determined that the product customer ordered is not in stock, then the person in charge needs to check if raw materials are available to manufacture the product.

Just In Time

ü  is an inventory strategy implemented to improve the  return on investment of a business by reducing in-process inventory and its associated costs

ü  The process is driven by a series of signals, or Kanban.

ü  Kanban also tell production processes when to make the next part.

ü  Advantages:

·         New stock is ordered when stock drops to the re-order level. This saves warehouse space and costs.

ü  Disadvantage:

·         One drawback of the JIT system is that the re-order level is determined by historical demand.