GROUP 4

GROUP 4. Panganiban , Charmaine Seno, Honey Grace Coria , Ma. Luisa Bondad , Mildred Durian, Carl.

“INVENTORY MANAGEMENT”. What is Inventory Management? Four Types of Inventory Management Main Purpose of Inventory management Examples of Inventory Management.

What Is Inventory Management.

Inventory MAnagement. Refers to the process of ordering , storing , using , and selling a company’s inventory. This includes the management of raw materials ,components , and finished products, as well as warehousing and processing of such items. Help companies identify which and how much stock to order at what time. It tracks inventory from purchase to the sale of good. The practice identifies and responds to trends to ensure there’s always enough stock to fullfill customer orders and proper warning of a shortage..

4 TYPES OF INVENTORY MANAGEMENT. RAW MATERIALS – Materials that are needed to turn your inventory into a finished product. These inventory items are bits and pieces of component parts that are currently in stock but have not yet been used in either work-in-process or finished good inventory..

Raw Materials. Inventory Example Direct Raw materials might be leather to make belt to your company. If you sell artificial flowers for your interior design business, the cotton used be considered direct raw materials too..

WORK-IN-PROCESS. Inventory that is being worked on is Work-In-Process(WIP), just like the name sounds. From a cost perspective , WIP includes raw materials (plus , sometimes labor costs) that are still in “production” when the accounting period ends..

FINISHED GOODS. Finished Goods Maybe the most straightforward of all inventory types is finished goods inventory. That inventory you have listed for sale on your website? Those are finished goods. Any product that is ready to be sold to your customers falls under this category..

Overhaul/MRO. Also known as Maintenance, Repair, and Operating Supplies, MRO inventory is all about the small details. It is inventory that is required to assemble and sell the finished product but is not built into the product itself. Depending on the specifics of your business, this inventory might be in storage, at a supplier, or in transit out for delivery..

MAIN PURPOSE. The main purpose of inventory management is to help businesses easily and efficiently manage the ordering, stocking, storing and using of inventory. By effectively managing your inventory, you’ll always known what items are in stock, how much of them there are , and where they are located..