Everything you need to know about the techniques and methods of inventory management. Inventory management and control refers to a system, which ensures the supply of required quantity and quality of inventory at the required time. At the same time, it prevents unnecessary investment in inventories. The aim of inventory management is, therefore, to neither hold too much nor too [...]
There are some selective inventory control methods to have an effective control on the inventory. The important methods are: 1. ABC Analysis (Always Better Control) 2. VED Analysis (Vital, Essential, Desirable) 3. FSN Analysis (Fast, Slow moving and Non-moving) 4. SDE Analysis (Scarce, Difficult, Easy) 5. HML Analysis (High, Medium, Low) 6. Just-In-Time (JIT) Inventory System. Method # 1. ABC [...]
After reading this article you will learn about the procedures for materials, purchase and stores management. Materials Management: Most manufacturing concerns spend more than 60% of the money they take in, for materials, i.e., materials soak up a substantial portion of the capital invested in an industrial concern. This emphasizes the need for adequate materials management and control because even [...]