PRODUCT/SERVICE MANAGEMENT & DISTRIBUTION NIC K ME RCURO/EV EN K L IPPLE /AUSTIN MOOR E
PRODUCT/
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INVENTORY
• Accurately taking inventory is one of the most important tasks
• It allows companies to see…
- how much of an item is sold
- if their employees are stealing from them
- if an item is popular (how much of it is bought and how fast)
• By regularly taking inventory companies are able to compare results for their last inventory
INVENTORY METHODS• Physical Inventory - is a process where a business
physically counts its entire inventory.
• Perpetual Inventory - A method of accounting for inventory that records the sale or purchase of inventory in near real-time, through the use of computerized point-of-sale and enterprise asset management systems.
• Unit Control - Inventory control system in which stock items are tracked using bin tickets and physical inventory inspection.
• Dollar Control System - are systems used in inventory management that reveals the cost and gross profit margin on individual inventory items.
• Basic Stock - Level of inventory that must be maintained to meet current sales volume or consumption, while taking order lead time into account.
• Model Stock Plan - mined assortment of merchandise which is in proper balance to the sales of the store
STEPS FOR TAKING ACCURATE INVENTORY
Step 1: Develop processes for material handling in the organization.
Step 2:Train employees to use the processes.
Step 3: Monitor employees and implement Audits.
Step 4: Implement a cycle counting procedure.
Step 5: Develop a procedure for reconciling discrepancies.
Step 6: Plan annual physical inventories. (Every Month)
STOCK INVENTORY SPREADSHEET