Explain the different tools of inventory management
Answers
5. XYZ Analysis
5. XYZ Analysis
6. SDE Classification
7. HML Classification
8. S-OS Classification
6. SDE Classification
7. HML Classification
8. S-OS Classification
5 tools for inventory management
1. Barcode data collection
The perpetual inventory system is highly dependent on timely and accurate reporting.
Manual reporting can be plagued by delays, errors, missing transactions, and undue burden on the workforce to collect and enter the data.
2. Cycle counting
Inventory accuracy is very important to the effective planning and control of inventory. Sadly, most inventory tracking systems are woefully inaccurate without an active and disciplined cycle counting system in place.
3. ABC analysis
Cycle counting is usually set up using ABC analysis to identify the more important and less important items mentioned above.
4. Integrated planning and execution
The primary focus of ERP is to improve customer service (meeting demand) while optimising resources including inventory (and reducing costs).
5. Lot tracking and traceability
Not every company needs serial number or lot tracking traceability; more and more are collecting this information in recognition of the increasing risk of product recalls