Inventory Management Assignment Help




Inventory Management is primarily about specifying the size and placement of stocked goods. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. Inventory management involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Systems and processes that identify inventory requirements, set targets, provide replenishment techniques and report actual and projected inventory status. Handles all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. Also may include ABC analysis, lot tracking, cycle counting support etc. Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs.

Results for "Inventory Managemen":-->

National Disaster Management Framework

I. INSTITUTIONAL MECHANISMS

We are expecting a Nodal agency for disaster management at the national level with appropriate systems.

(i)Constitution of National Emergency Management Authority with appropriate legal,

financial and administrative powers.

(ii)Roles and responsibilities of the NEMA:

-Coordinating multi hazard mitigation, prevention, preparedness and response programmes.

- Policies for disaster risk reduction and mitigation

-Preparedness at all levels.

-Coordination of response

-Coordination of post disaster relief and rehabilitation.

-Amendment of existing laws, procedures, instructions.

-Ministries/ Departments of Health, Water Resources, Environment and Forests, Agriculture, Railways, Atomic Energy, Defence, Chemicals, Science &Technology, Rural Development, Road Transport & Highways

Etc will be involved.

II. DISASTER MITIGATION/PREVENTION

Disaster mitigation/prevention to be main streamed into the development process.

(i) Each Ministry/Department which has a role in mitigation/prevention will make

appropriate outlays for schemes addressing mitigation/prevention

 (ii) Projects in vulnerable areas/areas prone to natural hazards to be designed to withstand natural hazards.

Techno-legal regime:

 (i) regular review of building codes and its dissemination

(ii) Construction in seismic zones III, IV and V to be as per BIS codes/National Building

Codes.

(iii) Construction in areas vulnerable to cyclones to be so designed as to withstand the wind hazard as per BIS codes/National Building Codes.

(iv) Comprehensive review and compliance of

- Town and Country Planning Acts

-Development Control Regulations

-Planning and Building Standards Regulations

(v)Put in place appropriate techno financial regime


PREPAREDNESS AND RESPONSE

National Emergency Response Force/Specialist Response teams

(i) Designation of units for conversion into Specialist Response Teams.

(ii) Designation of training centres.

(iii) Training of trainers.

(iv) Procurement of equipment

(v) Training of teams.

Specialized Response Teams at State level is also responsible to do the same set of work.

Extended Framework for Disaster Management

NATIONAL NETWORK OF EMERGENCY OPERATION

CENTERS [NNEOCs]

Setting up Emergency Operations Centre[EOC] at National level

(i) Multi- hazard resistant construction.

(ii) Communication system linkages.

(iii) Mobile EOCs for onsite disaster information management.

Putting Incident Command System in Place

(i) Designate nodal training centres.

(ii) Putting in place protocols/SOPs for Incident Command System.

India Disaster Resource Network

(i) A web enabled GISbased resource inventory listing out all the necessary resources for

emergency response available at the district and State level throughout the country

so that resources can be mobilized at short notice.

(ii) Set up servers, draw up and install programmes, input data.

(iii) Half yearly updating


EARLY WARNING SYSTEMS

(i) State of the art sensors to be set up.

(ii) Hazard monitoring, tracking and modelling.

(iii) IMD/CWC to carry out a review of sensors available and draw up plans for strengthening the system.

(iv) Models to be updated to improve prediction accuracy.

Warning Protocols

(i) Warning protocols to be user friendly.

(ii) Warning to be communicated as quickly as possible to the States/districts/community

Use of Statistics in Management:-->

Introduction to the use of statistics in management

Statistics may be defined as a systematic process of collection, classification, tabulation , analysis, interpretation and drawing valid inferences of numerical data in any field of human activity. In almost all the fields of human activity, the question that crops in are the variability of characteristics. The variability which is observed in nature, is the sound footing of statistical analysis which tells with a certain degree of confidence, the relative and absolute risks involved. This helps in management in decision making and planning for the future.

Decision Making - Use of Statistics in Management

Whether it is a factory or a farm resources of men, machine and finance have to be coordinated against time and space constraints, to achieve the objectives i the most efficient manner. The common trend of all the managerial activity is the capability to evaluate the situation vis-a-vis the objectives, limitations and alternatives, obtain information and make decisions. With the ever-increasing growth in the size and competition, the business environment has become complex. Since the complexity of business environment makes the decision making process difficult, the decision maker can no longer rely entirely upon his judgment, experience or evaluation to make a decision. Instead he has to base his decisions upon data which show relationship, indicate trends and show rates of change in various variables or characteristics.

Use of Statistics in every Area of Management

Application of statistics pervade virtually every area of management decision making whether it be production, finance, distribution, marketing or any other activity. In any organisation, the management uses statistical techniques for making valid decisions on the basis of factual data on the current operations. These decisions are of so vital importance that they not only improve the present situation, but also effect the future operations and policies. Statistics plays an important role and is very much in use in production and inventory decisions, marketing decisions,  investment and financial decisions and also in planning decisions.

Business inventory:-

The reasons for keeping stock:

There are three basic reasons for keeping an inventory:

  • Time - The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this "lead time."
  • Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods.
  • Economies of scale - Ideal condition of "one unit at a time at a place where a user needs it, when he needs it" principle tends to incur lots of costs in terms of logistics. So bulk buying, movement and storing brings in economies of scale, thus inventory.

High-level inventory management

It seems that around 1880 there was a change in manufacturing practice from companies with relatively homogeneous lines of products to vertically integrated companies with unprecedented diversity in processes and products. Those companies (especially in metalworking) attempted to achieve success through economies of scope - the gains of jointly producing two or more products in one facility. The managers now needed information on the effect of product-mix decisions on overall profits and therefore needed accurate product-cost information. A variety of attempts to achieve this were unsuccessful due to the huge overhead of the information processing of the time. However, the burgeoning need for financial reporting after 1900 created unavoidable pressure for financial accounting of stock and the management need to cost manage products became overshadowed. In particular, it was the need for audited accounts that sealed the fate of managerial cost accounting. The dominance of financial reporting accounting over management accounting remains to this day with few exceptions, and the financial reporting definitions of 'cost' have distorted effective management 'cost' accounting since that time. This is particularly true of inventory.

High-level financial inventory has these two basic formulas, which relate to the accounting period:

  • Cost of Beginning Inventory at the start of the period + inventory purchases within the period + cost of production within the period = cost of goods available
  • ost of goods available − cost of ending inventory at the end of the period = cost of goods sold

The benefit of these formulae is that the first absorbs all overheads of production and raw material costs into a value of inventory for reporting. The second formula then creates the new start point for the next period and gives a figure to be subtracted from the sales price to determine some form of sales-margin figure.

Manufacturing management is more interested in inventory turnover ratio or average days to sell inventory since it tells them something about relative inventory levels.

  • Inventory turnover ratio (also known as inventory turns) = cost of goods sold / Average Inventory = Cost of Goods Sold / ((Beginning Inventory + Ending Inventory) / 2)
  • and its inverse

  • Average Days to Sell Inventory = Number of Days a Year / Inventory Turnover Ratio = 365 days a year / Inventory Turnover Ratio

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