The objective of this guide is to describe the present use, application, and characteristic of selecting various inventory planning methods, and to explain how the methods are applied by the supply chain professionals.
This guide would be considering five Inventory Planning Methods which includes:
• Re-order points
• Fixed Order Interval
• Run-out time
• Material Requirement Planning (MRP)
Most of the Inventory Planning methods can be used in manufacturing as well as in the distribution industry.
These Inventory Planning methods should be seen as a tactical planning level. It concerns balancing supply and demand and it is in this respect dealing with the initiation, control, and monitoring of manufacturing and purchasing orders in order to keep the material flow and the value-adding activity in manufacturing going on without interruptions.
The guide comprises of 23 pages and over 4000 words with picture illustrations and easy-to-understand bullet point concepts.
Poor Inventory Planning Symptoms
Benefits of the Kanban system
Characteristics of the Kanban System
Rules of the Kanban system
Profile Kanban system
Characteristics of Re-order Point Systems
FIXED ORDER INTERVAL
MATERIAL REQUIREMENT PLANNING (MRP)
Evolution of Material Planning Systems
The Benefits of MRP
What is Required to Run MRP
Key Terms for MRP
Where-Used and Pegging Data
Dependent vs. Independent Demand
Actions of the MRP Planner
Characteristics of MRP
’Summing-up’ Material Planning Method Characteristics
Key Challenges in Using MRP
Kanban vs. MRP – Key Differences
Considering that the planning environment and the way an inventory planning method is applied has a major influence on how efficiently and effectively it can be used, it is of interest to know more about which inventory planning methods companies use, in what planning environment they use them, how they use them and how successfully they can be used.
Excess and Obsolete (E&O) inventory is most frequently discussed issue that affects distributors, manufacturers, and retailers. The inventory signifies massive investment for any business, and if it is not traded for some reason, it consumes warehouse space and increases liability.
This guide explains guidelines for adjustments, disposition, inventory valuation, identify the E&O root cause, responsibilities and reserves.
This Excess and Obsolete Inventory Policy Guide helps you proactively identifying, accounting for, and resolving the disposition of excess and obsolete inventory. Also to assign the proper accountability for continuous improvement activities focused on reducing the occurrence of excess and obsolete inventory by identifying and addressing the related root causes
This policy when implemented offer:
#) Inventory reserves evaluation to identify and review all inventory to proper estimations on a quarterly basis.
#) Proper planning to ensure accuracy on all levels.
This EXCESS AND OBSOLETE INVENTORY POLICY guide are comprised of 12 pages with the 2696 word counts. Included as Microsoft Word and PDF format, so you can customize it for your own business.
Table of Content
EXCESS AND OBSOLETE INVENTORY POLICY – ALLOWANCE FOR EXCESS, OBSOLESCENCE, AND SHRINKAGE INVENTORY
POLICY & SCOPE
WHEN INVENTORY IS CONSIDERED EXCESS AND OBSOLETE
UNDERSTANDING CONTRIBUTORS FOR EXCESS & OBSOLETE INVENTORY
INVENTORY ROOT CAUSE & DISPOSITION CODING
GUIDELINES – SHRINKAGE
GUIDELINES – OBSOLESCENCE
GUIDELINES – EXCESS INVENTORY
QUARTERLY MODIFICATIONS TO INVENTORY RESERVE
ANNUAL MAINTENANCE OF RESERVE
DEBIT BALANCES IN RESERVE ACCOUNTS
I hope you and your financial controller find it useful!
You will also find my blog "Safety Stock Formulas and Safety Stock Calculation- The Ultimate Guide"
Get Materials Management Technical Competencies Self Assessment Tool at circa 50% Discount when purchased with Inventory Planning Package.
Supplementary Inventory Management Policies & Procedure You Should have in your SCM Policy Book.
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