The latest and most complete 5 large inventory management methods

        The process of logistics management of the number of commodities referred to as inventory management. Previously widely believed that the more goods in the warehouse, indicating that the more developed enterprises, the more prosperous, and modern management believes that the zero inventory is the best inventory management. In order to better manage the inventory, to achieve the balance between safety stock and cost, previously used a variety of management methods, now briefly introduced five commonly used traditional inventory management methods, the specific start as follows:

        On-time production inventory management (JIT)

       JIT as an advanced mode of production, through the application of kanban and other tools to ensure that the production of synchronization and equalization, the implementation of "timely, appropriate, suitable for" production, the effect is obvious.

       The basic principle of JIT is based on the demand, supply, demand, supply side (on a link) according to demand side (next link) requirements, according to the demand side of the variety, specification, quality, quantity, time, Requirements, the production of goods or procurement of goods, not many, many, not early, not late and guaranteed quality to the designated location.

       Kanban management is the most unique part of JIT production mode. It is the core of JIT production site control technology. It will deliver the former process to the backward process in the traditional production process and change to the latter process according to the "Kanban" Pick up. Kanban management method in accordance with the concept of just-in-time production process as the user, only when the process after the request, before the process to allow production, Kanban acts as a transfer command role.

       Kanban functions: production and delivery of work instructions to prevent over-production and over-delivery, the "visual management" tools, improved tools.

       ABC key control method

       The basic point of the ABC key control method is: the company's entire inventory is divided into A, B, C three types of management, the high amount of A-type materials, as a focus to strengthen management and control; B substances in accordance with the usual method Management and control; C variety of goods a wide range, but the value is not, you can use the most convenient way to manage and control.

      The ABC of the three types of inventory, due to the importance of different types of inventory, the general can use the following control methods:

      1. The control of A-type inventory, to calculate the economic order of each item and the order point, as appropriate to increase the number of orders to reduce inventory backlog, which is to reduce its expensive storage costs and a lot of money occupied; You can also set up a perpetual inventory card for each type of inventory to enhance day-to-day control.

      2. The control of B inventory, but also prior to the calculation of economic order for each item and ordering points, but also can share the set permanent inventory card to reflect inventory dynamics, but do not require as strict as A class, as long as the regular A general check on it, to save storage and management costs.

      3. For C-type inventory control, because they are numerous, and the unit price is very low, the cost of inventory is low, therefore, can increase the number of orders per order to reduce the number of orders throughout the year, the daily control of such materials Methods, generally can use some of the more simplified approach to management. Commonly used is the "double-box method."

      The so-called "double-box method" is to be a stock of goods packaging two boxes, the first box of inventory is to reach the order point consumption, when the first box runs out, it means that must immediately order Application to supplement the production has been received and will receive the part.

      Economic Bulk Law (EOQ)

      Economic batch method is to determine the batch and the production interval is commonly used as a regular method of volume, is based on the principle of minimum payment per unit of product to determine the bulk of the method, but also to determine the batch and the production interval is often used to measure the amount of time .

      1. In a certain period of time, to determine the consumption / sales volume of an inventory, this number remains unchanged during the analysis period.

      2. The cost per order is fixed. Such as the purchase of raw materials spent on order fees, receiving inspection costs.

      3. Single-item inventory storage costs fixed, such as storage costs, insurance, and the opportunity to take stock of capital costs.

      4. Stock can be added in a timely manner, so do not consider insurance inventory.

      The application of economic batching method is a certain condition, or its application has a basic premise, that is to analyze the use or reduction of the object must be balanced.

      Reorder point inventory method

      The reorder point is used to specify the number of units of the goods when the replenishment order policy is initiated. once the inventory level is lower than the reorder point, the replenishment order. When there is uncertainty in the demand or completion cycle, appropriate safety stock is used to buffer or compensate for uncertainties.

      Reorder point = purchase lead time consumption + safety stock

      Enterprises in order to ensure the smooth production and business activities, must be several days in advance to purchase inventory, the number of days ahead of schedule is the lead time. Under normal circumstances, the lead-time should be equal to the number of days of delivery. Advance purchase conditions, the company once again issued orders for inventories of inventory, that is, re-ordering points. In general, the number of reorder points (R) should be equal to the product of lead time (L) and average daily demand (d) plus insurance reserve (B) when taking into account the insured stock.

      The expression for the reorder point model is: R = d x L + B

      Inventory practice

      Inventory, also known as the library, that is, with the inventory, weighing and reconciliation and other methods to check the actual inventory of the number and quality of inventory.

      The task is to ascertain whether the actual stocks are in line with the account cards; to identify the true cause of the inventory; to ascertain the quality of the goods in stock; and to identify the existence of inventories that exceed the shelf-life. The goal is to ensure that the accounts, cards, objects match.