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MRP glossary TOP > The functional roles an MRP production control system performs > Inventory Control

Inventory Control

zaiko_zu.gif Inventory Control Order Stocktaking Nonstocked Goods Inventory Goods In Process Item General Inventory Goods Policy Inventory Item Inventory Holdings Actual Inventory In Process Inventory Safety Stock Non-Allocated Inventory Allocated Inventory Warehose Inventory Floor Inventory Actual Inventory Physical Inventory Book Inventory Theoretical Inventory Dead Stock Dead Stock Sleeping Stock cheduled Receive/Issue Reversal Unscheduled Receive/Issue Inventory Transfer Receive/Issue Constructive Receive/Issue Automatic Receive/Issue Receive Issue Constructive Receive Constructive Issue Receive/Issue Stocktaking Physical Inventory Counts Physical Inventory Counts Book Stocktaking Warehouse Stocktaking In Process Stocktaking Simultaneous Stocktaking Cycle Counting Cycle Counting Periodic Stocktaking Cost Approach Lower of Cost or Market First-in First-out FIFO Last-in First-out LIFO Average Cost Method Simple Avarage Method Weighted Average Method Moving Average Method Inventory Control Method ABC Analysis Fixed Size Ordering system Ordering Point System Order Point Item Order Point Item Reorder Point Order Point Service Ratio Fixed Period Ordering System
Work descriptions:
Materials and parts necessary for the production are stocked in a warehouse. It is important to appropriately control such receiving/issuing statuses to precisely keep the track of inventory. This work is usually handled by the material section, a person in charge of material storage, or a person in charge of the warehouse, belonging to the purchasing or material division.
Problems:
Possible problems in the inventory control system are as follows:
1. Materials or manufactured goods are too frequently entered or taken from a warehouse, and thus it is difficult to handle the receiving/issuing properly.
2. It is hard to grasp the accurate inventory status because there is some inconsistency between the book inventory and the physical inventory.
3. The record of receiving/issuing of the inventory, showing what inventory was used, when it was, or how much inventory was used, is not precisely logged, and therefore the material cost cannot be correctly calculated.
4. A regular inventory check is conducted only once a year, which is not enough to keep the inventory accurate.
Functions:
When the delivery and acceptance inspection are over, the purchased parts or subcontract goods are once put in material storage, and then sent to the production site in a form of dispatching goods from the warehouse. Meanwhile, The parts and assemblies produced in the production site are put in the parts warehouse, and then taken out of the warehouse when assembled. In inventory control, the receiving/issuing status is controlled while the inventory check is conducted in a cycle in order to reduce the difference between the book inventory and the physical inventory.

Reference：JIT Business Research Mr. Hirano Hiroyuki

Production Plan | The functional roles an MRP production control system performs | Engineering Data Control