INVENTORY CONTROLSUBMITTED BY:

CHAWDA UTSAV MOHANROLL NO-08

DEPT. OF MECHANICAL ENGINEERING, SJCET.

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ContentsOrdering ProceduresTwo Bin Systems

Ordering Cycle

Economical Order Quantity (EOQ)

Economical Lot Size

ABC Analysis

Recorder Procedures

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ORDERING PROCEDUREA work order is an order received by an organization from a customer or client, or an order created internally within the organization. A work order may be for products or services.

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LAYOUT OF ORDERING PROCEDURE

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TWO BIN SYSTEMThe two-bin inventory control method is mainly used for small or low value items.Two bin system is used for the material control. It is that technique of material control in which we have two bins, one is used for in use minimum stock and second bin is used for reserve stock or to keep the remaining quantity of material.

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ECONOMIC ORDER QUANTITY.Economic Order Quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering costs. It is one of the oldest classical production scheduling model.In most cases, the order quantity is determined by the balance between the ordering costs for the necessary items and the inventory carrying cost. This order quantity is generally called lot or lot size.

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ECONOMIC LOT SIZEThe order quantity is determined by the balance between the ordering costs for the necessary items and the inventory carrying cost. This order quantity is generally called lot or lot size.Economic lot size refers to the best lot quantity to make the total cost minimum by considering the balance between the ordering cost and inventory carrying cost.

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ABC ANALYSIS The ABC analysis (or Selective Inventory Control) is an inventory categorization technique. ABC analysis divides an inventory into three categories: "A items" with very tight control and accurate records"B items" with less tightly controlled and good records"C items" with the simplest controls possible and minimal records

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CONCEPT OF ABC ANALYSIS

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BENEFITS OF ABC ANALYSISIt gives a clear idea to the inventory planning manager to order new materials whenever required. It tries to focus & direct the efforts based on the merits of the items.It provides steps to utilize the material in sequence & to give importance on a particular part or equipment.

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DRAWBACKS OF ABC ANALYSISIt does not show the rate at which the stock will be utilized so that it can be refilled with fresh ones.It does not give exact quantity of goods required for inventory.

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RECORDER PROCEDURE

The procedure for recording is based on the stage at which the recorder is to be given. This stage is known as the recorder point.In determining the recorder point the following three factors are needed to be at hand: Usage rate : quantity of

inventory used or sold each day.

Lead Time : Time (in days) takes for an order to arrive when an order is placed.

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Thank You

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