Inventory Systems: Types and Management
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ScribdTranslationsInventory Systems: Types and Management
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ScribdTranslationsGUIDE No.
5 INVENTORY SYSTEMS
3.1Sistemas de inventarios:Inventarios: Concepto, Características. Modelos de
Contrary Cost Inventories. Inventory Policies. Management and Control of
Inventories
3.1 Inventory systems: An inventory system is a set of rules,
methods and procedures systematically applied to plan and control the
materiales y productos que se emplean en una organización. Este sistema puede ser
manual or automated. For cost control, a key element of management
for any company, there are systems that allow estimating the costs of goods
that are acquired and then processed or sold.
Types of inventory systems:
Perpetual Inventory System: the business maintains aregistrationI continue for each
inventory item. Therecordstherefore show the available inventory all the
timeTherecordsperpetuals are useful for preparing thefinancial statementsmonthly,
quarterly or provisionally.
Inventory SystemNewspaperIn the inventory systemnewspaperthe business not
maintains a continuous record of the available inventory, rather, at the end of the period, the
business performs a physical count of the available inventory and applies thecostsunitarians for
determine the cost of the final inventory. This is the inventory figure that appears in the
Balance Sheet. It is also used to calculate the cost of goods sold. The
The periodic system is also known as the physical system because it relies on counting.
Real physical inventory. The periodic system is generally used for accounting
the inventory items that have a low unit cost.
3.1.1 Inventories: It is the set of goods owned by a company that have been
acquired with the aim of reselling them in the same condition they were in
purchased, or to be transformed, into another type of goods and sold as such. The
Inventory is generally the largest asset on their balance sheets, and theexpensesfor
inventories, callscostof goods sold, are usually the largest expense in the
income statement.
The main types of inventory are:
Of Merchandise or Inventory for Sale
On Raw Materials
Of Products in Process
Of Finished Products
Of Factory Materials and Supplies.
3.1.2 Characteristics. Inventories are tangible goods held for sale in
the ordinary course of business or to be consumed in the production of goods orservices
for your latermarketingThe inventories include, in addition to the materials
cousinsproductsen processyproductsfinished goods or merchandise for sale, the
materials, spare parts and accessories to be consumed in the production of goods
manufactured for sale or in the provision of services; packaging and containers and the
inventories in transit.
3.1.3 Competing Costs Inventory Models. Research
3.1.4 Inventory Policies: In most of thebusinessthe inventories represent
oneinvestmentrelatively high and have significant effects on everythingfunctions
principles of the company. EachfunctionIt has to generate different inventory amendments and
often incongruent
Sales.- High inventories are needed to quickly meet demands.
of themarket.
Production.- high inventories of raw materials are needed to guarantee the
availability in manufacturing activities; and a permissibly large cushion of
Finished goods inventories facilitate stable production levels.
Purchases - high purchases minimize thecostsper unit and the purchase expenses
in general.
Financing.- reduced inventories minimize the needs forinvestment(current
in cash) and reduce thecoststo maintain inventories (storage,
antiquityrisks, etc.).
The purposes of thepoliciesInventory management must include: 1.- Plan the optimal level of
investment in inventory. 2.- Through control, maintain the optimal levels as close
as possible from what was planned. Inventory levels must be maintained between
two extremes: an excessive level that causes operating costs,risksinvestment
unsustainable, and an inadequate level that results in the impossibility of doing
quickly facing the demands of sales and production (High cost due to lack of
existence)
3.1.5 Inventory Management and Control:
Inventory management is undoubtedly a critical element for good
company development, if this is not carried out correctly the possibility of having
supply problems or higher costs are very high, this is why
the regulations for their management must be reviewed permanently within the
company, being aware that we are in a reality where the only constant
it is the change and that if we are not consistent with this reality the possibility of stopping
Being competitive and exiting the market is very high.
In administrative decisions, the expert's criterion is irreplaceable; however, a
Good management of quantitative instruments considerably facilitates your work.
allowing him to make mistakes on paper, which means the company's profitability must
improve considerably, in the example of the fascicle we only play with two possible
variations, different options can be managed among which could be, such as
BONINI claims to affiliate with buyer clubs in order to obtain better conditions.
of negotiation.
Currently, it is not uncommon to find people who assert that: "it should be handled
large amounts of inventories, as this means wealth and it is preferable to keep
in inputs or products the silver, since with the increases caused by inflation and/or the
devaluation, a higher profitability is achieved than in other options." In the other
extreme people are observed who claim that: "inventories should be reduced to
zero and implement a just-in-time policy, where inventories are a problem that
it is generated by managerial inefficiency"; which reminds us of the initial example, with a
aggravating, in this situation at both extremes one can be wrong, as someone may
having excessive inventory and not being able to pay the payroll, while on the other
extreme would be one who has had to delay their production process due to lack of
timely with the required elements for the purpose.
Inventory control:
The problem regarding the quantification of inventories can be as large or as
small like our range of products. Not necessarily a product range
extensive implies big problems, what complicates the operation of our business is
a wide range of products within the raw material, that is, if we sell pizzas, but
we also sell sushi, cakes, tacos, rice dishes, ice cream, tostadas, and food
international, then we face excessive diversification that forces us to
having an inventory that is too high.
Steps to establish inventory control
The suggested system for inventory control is called ABC. The ABC system of
inventory control is based on the assumption that we have products 'A', which
comprise at least 70% of the total monetary value of the raw material, products "B" that
they make up approximately 20% of the value of our inventory and 'C' which is 10%
remaining, approximately.
This checklist will initially help us control daily consumption and
weekly, as well as to create a shopping list that may include the amount of
money that we are going to spend.
Through inventory control, downtime is eliminated since any cashier
qualified can carry out the registration, with the support of the person in charge of receiving
the material.
For physical counting, operational staff can always be used, so that it is more
quick. The goal is for the businessperson to always have valuable information for a
better control of your costs and cash flow.
3.2Control de calidad de producción:CalidadTotal. Origen y Filosofía. Modelos de
Production Process Control. The Deming Model. Application of Control
Quality.
This point is to be investigated by you. We will have a debate on the day.
Tuesday, July 7 during class time. Prepare topics 8 to 10 as well.
questions for debate.
Thank you.