Hands-On Inventory Management (Series on Resource Management)

better Inventory Management Translates Directly Into Better Cash Flow For Businesses. However, In Order To Successfully Manage Inventory, Businesses Must Strike A Balance Between Customer Demand And The Amount Of Inventory They Keep. hands-on Inventory Management Demonstrates Principles Key To Developing An Inventory Management Process, Which Will Meet Customer Needs While Keeping Inventory Costs At A Level Reasonable Enough To Produce A Profit. the Text Explains Basic Inventory Principles, Calculations, And Techniques Using Real-world Examples. Different Operational Situations Require Different Inventory Planning And Replenishment Approaches; Hence, This Book Emphasizes The Prerequisites Needed For Success In A Number Of Different Industries. These Prerequisites Include Top Management Support, A Clear Definition Of Responsibilities And Alignment Of Goals Throughout The Company, As Well As Uncomplicated Item Identification. The Author Stresses The Importance Of Accurate Recordkeeping And Delineates The Most Common Causes Of Inaccurate Records. He Provides Solutions To Mitigate These Causes And Demonstrates How Businesses Can Develop And Administer A Cycle Counting Program That Will Lead To A More Well-managed Physical Inventory. using A Building-block Approach, hands-on Inventory Management Gives A Clear View Of What Steps Must Be Taken To Strike A Profitable Balance Between Customer Demand And Inventory. Introduction Objective of Inventory Management Reasons to Carry Inventory Too Much Inventory Too Little Inventory Costs Associated with Inventory Profits and Cash Flow are Different Things Eternal Issues of Inventory Management Prerequisites for Effective Inventory Management Operational Environments How Operational Situations Impact Inventory A Retail Store (Merchandising Environment) A Producer of Retail Items (Make-To-Stock Environment) A Specialty Steel Fabrication Shop (Make-to-Order Environment) A PreEngineered Firm (Engineer-To-Order Environment) Flow Process Environment Project Environment Types of Inventory Different Inventory Items Require Different Controls Classification by Stage in the Production Process Classification by Responsibility Classification by Value of Annual Usage-ABC Classification The ABC Classification Other Ways of Classifying Inventory Measures of Inventory Effectiveness Percentage of Inventory with No Requirements (Demand) in Upcoming X Months (Lower Is Better) Percentage of Inventory with No Issues for the Last X Months (Lower Is Better) Days Inventory On Hand (Lower Is Better) Other Measures Aligning Goals with Other Departments Purchasing and Inventory Management Production and Inventory Management Lowering Inventory Levels Engineering, Production, and Purchasing Responsibility for Inventory Management Inventory Transactions The Need for Inventory Records When Should A Part Number Be Assigned? Part Numbering Schemes Significant Part Numbers Nonsignificant Part Numbers Combination Part Numbers Why Use Records? Bills of Materials Inventory Accuracy The Need for Inventory Record Accuracy Achieving Inventory Accuracy Only Two Types of Inventory Transactions Transactions that Increase Quantity on Hand Using a clear, organized, and accessible building block approach to managing inventory, this volume offers complete coverage of the basic concepts, calculations, and techniques of inventory. These fundamental techniques, which can be easily applied to handle problems in the workplace, are used to demonstrate current concepts such as lean principles and continuous improvement. Numerous case studies from a variety of industries are provided to illustrate concepts. Additional topics presented include types of inventory, inventory transactions, bills of materials, planning and replenishment, storage and physical control, and supply chain management and technology. Front cover 1 Dedication 6 Contents 8 Preface 12 Acknowledgments 16 About the Author 18 Chapter 1. Introduction 20 Chapter 2. Operational Environments 30 Chapter 3. Types of Inventory 34 Chapter 4. Inventory Transactions 54 Chapter 5. Inventory Record Accuracy 60 Chapter 6. Cycle Counting and Physical Inventory 68 Chapter 7. Inventory Planning and Replenishment 74 Chapter 8. Storage and Physical Control 98 Chapter 9. Supply-Chain Management 106 Chapter 10. Lean Principles and Continuous Improvement 112 Further Reading 118 Index 120 Back cover 130 Offers coverage of the basic concepts, calculations, and techniques of inventory. This book discusses these fundamental techniques, which can be easily applied to handle problems in the workplace, to demonstrate concepts such as lean principles and continuous improvement. It includes numerous case studies from a variety of industries Using a clear, organized, and accessible building block approach to managing inventory, this title offers complete coverage of the basic concepts, calculations, and techniques of inventory