AFMI -SCM -BL01M03-Day08-27Nov20 SC08-BL01M03
systems analysis – techniques of logistics system analysis – factors affecting the cost and importance of logistics.
What is the process of stock taking?
Stock taking or inventory checking is the process of counting, weighing or otherwise calculating all items in stock and recording the results. ... To verify the value of stock shown in the balance sheet by physical confirmation and value your stock in terms of cost and potential sales.
Purpose of Stocktaking
Stocktaking allows you to keep an accurate track of the physical stock you have, what's been sold, and what hasn't. It's all about comparing the physical stock to what the report says then finding any discrepancies
Efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain.
There are various techniques of stocktaking, defined below:
Periodic stock count.
Continuous or perpetual stock count.
Annual stock take.
Four main causes of inventory shrinkage:
Employee theft, and.
Benefits To Maintaining Good Stock Control
Increases productivity and efficiency. ...
Creates a more organised warehouse. ...
Helps save time and money. ...
Improves accuracy of inventory orders. ...
Keeps customers coming back for more.
Use an EPOS system. ... An EPOS system, which stands for 'electronic point of sale system', can help small businesses like yours manage your business more effectively, and improve your customers' experience with you. They can speed up key business processes like accounting, stock management and sales performance
Figure out who is stealing. ...
Have security in place for both customers and employees. ...
Train employees. ...
Beware of scams. ...
Use RF/RFID tags. ...RFID a wireless technology that uses transmitted radio signals to tag an item in order to track and trace its movement without human intervention has superior capabilities over bar codes and promises many supply chain benefits, such as reductions in shrinkage, efficient handling of materials, increased product
Run a Live-stock system. ...
Use employee sign-ins.
What are the 4 types of inventory?
The four types of inventory most commonly used are
Finished Goods, and
Maintenance, Repair, and Overhaul (MRO).
When you know the type of inventory you have, you can make better financial decisions for your supply chain
What is the main rule of stock rotation?
The golden rule in stock rotation is FIFO 'First In, First Out'. What is stock rotation? If food is taken out of storage or put on display, it should be used in rotation
What is continuous stock taking?
Continuous stock taking specifically means that stock-taking is conducted on a regular basis. ... Since entities can use this stock-taking method to ensure that they always maintain the right level of stocks to meet production requirements or customer demand, it also impacts the overall profitability of an entity
There are four accepted methods of inventory valuation.
First-In, First-Out (FIFO)
Last-In, First-Out (LIFO)
Weighted Average Cost.
You are the purchase manager for Shridevi Paper Mills. You feel that wastage reported from the warehouse is more than the usual. How will you go about finding the cause and your suggestions to improve the better management.
Teacher' note: The students are encouraged to research on different reasons. there are various factors. No system is foolproof, however a good risk mitigation plan, coupled with latest technology and systems will help organisation in optimisation.
companies need to reduce the manual and labor-intensive warehousing process to more digitized and automatic
I will a take a look at the roof and floor of the warehouse and also keep the premises clean to eradicate the loss
Sorting of purchased goods based on quality
Set up a small team to check the wastage reports ,n make sure that next tym it doesnot happens
By reusing and recycling the waste
Investing in warehouse robotics technology will highly benefit
Reasons might be 1) poor layout of warehouse and 2 ) working efficiency of staff may vary..... suggestion is that proper planning of warehouse layout so that space for individual stuffs , machinery , working space should all be clean and well maintained to avoid waste.....staff should be properly trained so that each shift should work with same efficiency
First I enquiry about where the initial wastage occurring
Reasons might be less upgraded machines or double handling if materials or less skilled laborers and suggestions are to upgrade machines and to hire skilled laborers
To check the layer in paperboard. To ensure the stacking ability of paperboard.
Regular inspection about the wastage should be implemented
1st i will check where the wastage is more like due to transport, over production or waiting waste. Then to improve it i will sort them like warehouse layout avoiding multiple storage locations.
The first i checked the warehouse why the wastage is occur more than usual and given order to the warehouse workers that recycle the waste and use it again ..
Instead of manual work i prefer online mode of work which reduces wastage
Proper Inspection throughout the whole manufacturing process to check where they are using excess materials. My suggestion to reduce the wastage would be Chemical recovery and Recycling, Reducing costs and liabilities.
We can use the team in a better way and we can develop the quality according to customer
Recycling of wastes and making best use of
Regular inspection should be done (or) recycling of product
Labelling the product
using of right floor plan & enough space between products & fix
Class Discussion 2
If you have to catogorize the stock in your warehouse, what will be points you will consider before making the categorization?
Labelling, size, type
Based on the time , movement and also the value of the stock
Based on quality Grade
Quantity and quality.. size and shape of the product
Making a identification mark based on products category
Dividing stocks based on time period of their delivery, proper labeling..
Using right floor plan, having enough space between products and fixtures
Categorize the stock based on their delivery schedule like daily selling's weekly or monthly sellings
Palletization of stock. How to manage first in first out. Stacking ability of product
Categorizing the stock according to their movement like slow and fast moving goods
Transport waste, waiting waste, production waste
First label , boxes and containers in the warehouse e .place Place usefull thing in the front . make cleaining a first priority and place item according to uses and make a list of it.
I would like to categorize them based on quantity.
Based on the stages of manufacturing like raw materials and finished products and demand
Good infrastructure with all facilities
Keeping the same product in a stacking manner and marking it
Quality and size
Based on quality Grade
Based on material,
Sufficient space maintenance for each group,
Lakshminarasimman V Rao | SCM| Class notes | Study Material | AFMI | Corporate Neeti Consulting | Mysuru
All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.