Whatever your motivation, we invite you to read this ebook and raise the level of operational excellence in the inventory and warehouse management innovation communities. Inventory management is a systematic approach to sourcing, storing, and selling inventory both raw materials components and finished goods products. Introduction to medical equipment inventory management. Sample jobs covered material handler, material mover, and material associate logistics and inventory control page 1. There are various types of inventory management techniques which can help in efficient inventory management. Inventory control means efficient management of capital invested in raw materials and supplies, work in progress and finished goods. Sc1x supply chain and logistics fundamentals lesson. The key decision in manufacturing, retail and some service industry businesses is how much inventory to keep on hand.
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. If this sounds like your company, the good news is, that inventory control improvements can easily be made without resorting to a large investment in people and inventory management systems. Inventory management refers to the process of ordering, storing and using a companys inventory. Each unique product type requires a location in the warehouse that it can. 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. Keynes differentiated three motives for holding money which can be applied. Companies maintain inventories of raw materials, work in development or final products for various reasons. Pokhara university nobel college final year project on inventory management system submitted by anish singh maharjan roll no. 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. In simple terms, it provides a means of determining the best way to spend your limited dollars to achieve the maximum impact. Part i gives an overall introduction to inventory management. The downfall of some companies results from the fact that they are simply unaware of, or do not consider, the cost of. It is an inventory management technique where inventory items are classified into three categories namely.
Inventory management is a very important function that determines the health of the supply chain as well as the impacts the financial health of the balance sheet. The authors of the definitive guide to inventory management discuss what inventory is, the role of inventory in supply chain management, and why inventory is such an important metric in supply chain management. It looks after the units in a firm and makes sure that they are in a moderate amount which does not affect the performance of. Inventory systems inventory systems answer the questions. Introduction this chapter explores warehousings expanded role in customer operations and supply. Inventory control signifies a planned approach of finding when to shift. It is interpreted as accounting control and operating control. The definitive guide to inventory management informit. An inventory is the stock of items used in an organization. Through the use of reports generated from the inventory.
This video will teach the fundamentals of inventory analysis for a constant demand rate. The inventory control user manual, along with this system administration manual, complete the set of user manuals that accompany each appx product. The course will cover cost concepts, inventory planning, ordering methods, receiving acceptable goods, establishing requirements and quantities, and managing inventory levels. Such a large domain would result in an equally as large scope of development. Effective inventory flow management in supply chains is one of the key factors for success.
Chapter 1 basic of inventory management objectives. The restaurant inventory control system was originally designed to be a windows application developed in visual basic for the user interface and logic to store data in a sql server, but a decision to switch to java and java database connectivity jdbc was made during the development phase due to simpler and more versatile deployment. This proposed project aims at inventory control in the restaurant and catering industry. Provide for effective management, including disposal, of surplus, scrap and excess inventory.
Evaluate how public warehouses and inventory control can help meet organizational needs. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Pdf final year project on inventory management system. Scribd is the worlds largest social reading and publishing site.
Introduction the term inventory means the value or amount of materials or resource on hand. It discusses the movement of materials through supply chains, reasons for holding stocks, their importance, use, costs, and so on. Discuss various techniques for safely and effectively managing inventories and optimizing services to clients. Odoo is a suite of open source business apps that cover all your company needs. Smartturn is committed to fostering a selfsustaining community of inventory and warehouse experts through knowledge sharing and learning. Introduction to inventory management osou odisha state open. Sumit thakur uncategorized free download inventory management ppt with pdf. Crm, ecommerce, accounting, inventory, point of sale, project management, etc. Inventory management systems central asset repository of information.
A quick introduction to logistics and inventory control definition plan and control the movement and storage of materials and products in the manufacturing system. Doc chapter 1 inventory management introduction omega. In recent years this search has led to many changes. How do decisions about stock affect other operations. Table of contentsi 1 introduction 2 inventory management 3 inventory models 4 economic order quantity eoq eoq model whentoorder. Ranganath keywords inventory management, survival, working capital, liquidity and profitability abstract inventory management is a crucial aspect of managing a company successfully. Pgchsm 20 inventory control techniques page 3 inventory control focuses on the process of movement and accountability of inventory. Mar 20, 20 a power point lecture based on the book principles of operations management by heizer and render. This system can be used to store the details of the inventory, stock maintenance, update the inventory based on the sales details. It looks after the units in a firm and makes sure that they are in a moderate amount which does not affect the performance of a company. Inventory management as one of the key activities of business logistics, has always been. This paper is an introduction to the study of inventory theory. 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.
Inventory control techniques represent the operational aspect of inventory management and help realize the objectives of inventory management and control. American journal of business education third quarter 2014. Additionally, the recovery management area could utilize inventory information to identify an assets criticality especially when the assets location and owner are identified within the inventory management system. In june 20 the council of supply chain management professionals cscmp released its annual state of logistics report. Misra, montclair state university, usa abstract abc analysis is a wellestablished categorization technique based on the pareto principle for. Introduction inventory management systems is a key instrument for businesses when tracking their inventory. Inventory management definition, types of inventory and.
The inventory module manages your inventory of frames, contact lenses and other miscellaneous items. The authors analyze the collected data and establish a formal inventory control system as the solution to improve the companys inventory management. The aim of inventory management is to hold inventories at the lowest possible cost, given. Bus1 introduction to inventory control and purchasing. Inventory control an overview sciencedirect topics. The challenge in managing inventory is to balance the supply of inventory with demand. With your download, get the 14 best papers relevant to this one, including 12 top related papers. The term inventory originates from the french word. Department fmm institute sabah representative office no. Every organization constantly strives to maintain optimum inventory to be able to meet its requirements and avoid over or under inventory that can impact the financial figures. The answers to these questions embrace the most important issues of inventory management. An inventory system monitors the levels of inventory and determines the timeline and quantity of orders. Our proposed project is a real time implementation of an inventory control system for an onsite corporate restaurant management and catering company.
Introduction and importance of inventory management. Inventory is a fundamental measure of the overall health of supply chain and logistics activities. Odoos unique value proposition is to be at the same time very easy to use and fully integrated. This consists of strict polices and processes in regards to. For some businesses, this involves raw materials and components, while others may only deal with finished stock items ready for sale. Apr 01, 2017 free download inventory management ppt with pdf. Describe the meaning and objectives of inventory management. For questions about the computer hardware used at your installation, refer to the manuals provided by. A power point lecture based on the book principles of operations management by heizer and render. Inventory control is the set of activities that coordinate purchasing, manufacturing, and distribution to maximize the availability of raw materials for manufacturing or the availability of finished goods for customers 25. A quick introduction to logistics and inventory control.
Jan 31, 2011 video introduction to inventory control by traker systems. An introduction to inventory systems your business. If the system has been preloaded with the frame upc cd, managing frames inventory is streamlined by autofilling when a registered barcode is entered. Inventory management is obliged for the goods in inventory, also to their inward flow and outward flow.
We demand a good plan that satisfies customers while maintaining the lowest possible total cost. Inventory management is the process of ordering, handling, storing, and using a companys noncapitalised assets aka its inventory. The inventory management system ims refers to the system and processes to manage the stock of organization with the involvement of technology system. An introduction to asset management and asset management resources i. Inventory control is concerned with achieving an optimum balance between two competing objectives. Smartturn created this ebook for business owners, logistics professionals, accounting staff, and procurement managers responsible for inventory, warehouse and 3pl operations, as well as anyone else who wants to demystify. Marco bijvank rotterdam school of management, erasmus university, burgemeester oudlaan 50, 3062. The importance of proper inventory management is evident when one considers that inventories have lead to the.
Abc analysis stands for always better control analysis. In business terms, inventory management means the right stock, at the right levels, in the right place, at the right time, and at the right cost as well as price. Inventory control is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply. Lots of inter branch warehouse transfers to get the right inventory in the right place. Inventory management is that aspect of current assets management, which is concerned with maintaining optimum investment in inventory and applying effective control system so as to minimize the total inventory cost. The term inventory control is used to cover functions which are quite different and are related to one another only in that they both require the maintenance of adequate records of inventory as well as receipt and issue corresponding to these two functions. The functions for inventory management should allow the user to know which ingredients in the inventory are below their threshold levels and need attention. The term inventory can be defined as, the term inventory includes materials like raw, in process, finished packaging, spares and others. Jul 24, 2008 warehouses crammed to the rafters with the wrong inventory. Introduction inventory management is a critical management issue for most companies large companies, mediumsized companies, and small companies. The system must include functions that will allow the user to add a recipe, ingredient, vendor to the database.
Definition inventory management is an enterprisewide discipline concerned with the identification and tracking of information services is hardware and software assets. Inventory control and recent trends in ppc inventory control. The book follows a logical path through inventory management. Several techniques of inventory control are in use and. Fixedorder quantity system an order of fixed quantity, q, is placed when inventory drops to a reorder point, rop fixedtime period system inventory is checked in fixed time periods, t, and the quantity ordered. Typically, inventory management systems are used by firms that either sell a product or manufacture a product for purposes of accounting for all the tangible goods that allow for a sale of a finished product, or parts for making a product. Unit 1 introduction to inventory management learning objectives after completion of the unit, you should be able to. To make this easier we have divided the material into four parts. Warehouses crammed to the rafters with the wrong inventory.
An introduction to production and inventory control springerlink. As a result we narrow our software down to our case study of an outlet of guckenheimer concentrating only on the basic resources utilized in inventory control of the outlet. Inventory management as one of the key activities of business logistics, has always been a major preoccupation for the companys survival and growth. Introduction asset management is defined as maintaining a desired level of service at the lowest life cycle cost. Bridging the gap between research and classroom handanhal ravinder, montclair state university, usa ram b. This course will provide a basic understanding of inventory management including purchasing, inventory, production and distribution processes. Inventory control refers to a process of ensuring that appropriate amount of stock are maintained by a business, so as to be able to meet customer demand without delay while keeping the costs associated with holding stock to a minimum. The book gives a selfcontained introduction to inventory. With regard to the companys current operations, the importance of each of the different kinds of fertilizers held in inventory was analyzed using the 8020 rule, or the abc analysis.