Read this essay to learn about the five important activities of stores department in an organisation. The activities are:- 1. Receiving 2. Stores Section 3. Issue Section 4. Accounting Section 5. Stock Taking or Checking. 1. Essay on Receiving: The items ordered by purchase department are received by this section. The supplier delivers the items along with other documents to [...]
There are some selective inventory control methods to have an effective control on the inventory. The important methods are: 1. ABC Analysis (Always Better Control) 2. VED Analysis (Vital, Essential, Desirable) 3. FSN Analysis (Fast, Slow moving and Non-moving) 4. SDE Analysis (Scarce, Difficult, Easy) 5. HML Analysis (High, Medium, Low) 6. Just-In-Time (JIT) Inventory System. Method # 1. ABC [...]
The most common method to find out how much to order is Economic Order Quantity (EOQ). The economic lot size of an order depends upon two types of costs: i. Inventory carrying costs and ii. Procurement or set up costs. EQO gives the order level where total costs i.e., inventory carrying and procurement costs are minimum. EOQ formula is based [...]