303

Q. 1 Inventory management Definition of 'Inventory Management'

The overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. A business's inventory is one of its major assets and represents an investment that is tied up until the item is sold or used in the production of an item that is sold. It also costs money to store, track and insure inventory. Inventories that are mismanaged can create significant financial problems for a business, whether the mismanagement results in an inventory glut or an inventory shortage.

Inventory management is a art of manging the stocks to meet the customers need ,several types of stock (1) raw materal (2) work in process(3) finished goods. stock should not very large quantity ,because it increases our cost of inventory and not insufficient because it can loss our customer. objective: Keep the item control cards match to the item cards in aim to control the movements in warehouses the registration in those cards from the actual prove documents. Keep the cards of trust permanent items released to employees as personnel trust, and also trust for department and division belongs to university. Keep the documents that prove constraints. Undertake all procedure and control constraints of movement of items in cards. Perform periodical match for income constraints in item control card with those in item cards. Define and follow up the items which decide to fix or gif or sale or damage according periodical report send to deputy of the university. Make necessary studies to determine the suitable level of store, and determine economical way for store to avoid decrease or increase in stored items.

(i) To ensure that the supply of raw material & finished goods will remain continuous so that production process is not halted and demands of customers are duly met. (ii) To minimise carrying cost of inventory. (iii) To keep investment in inventory at optimem level. (iv) To reduce the losses of theft, obsolescence & wastage etc. (v) To make arrangement for sale of slow moving items. (vi) To minimise inventory ordering costs.

Q. 5 meaning purpose and advantage of mrp Meaning Material Requirements Planning is a time phased priority-planning technique that calculates material requirements and schedules supply to meet demand across all products and parts in one or more plants. Information Technology plays a major role in designing and implementing Material Requirements Planning systems and processes as it provides information about manufacturing needs (linked with customer demand) as well as information about inventory levels. MRP techniques focus on optimizing inventory. MRP techniques are used to explode bills of material, to calculate net material requirements and plan future production. Purpose

The main theme of MRP is getting the right materials to the right place at the right time. Specific organizational objectives often associated with MRP design and implementation may be identified among three main dimensions, namely: inventory, priorities and capacity: Dimension: Objective specifics Inventory: - Order the right part - Order the right quantity - Order at the right time Priorities: - Order with the right due date - Keep the due date valid Capacity: - Plan for a complete load - Plan for an accurate load - Plan for an adequate time to view future load Objectives of MRP should be identified with regard to inputs and outputs associated with it. Inputs are delineated with master production schedule, bill of materials, etc. (see Exhibits 1-1 and 1-3). Therefore, a clear specification of MRP objectives should be associated with a respectively clear description of objectives of MRP inputs as well as MRP outputs.
ADVANTAGES OF MATERIALS REQUIREMENT PANNING (MRP)

Helps to minimize inventory levels and the associated carrying costs Helps to track material requirements Helps to determine the most economical lot sizes for orders Helps to compute quantities needed as safety stock Helps to allocate production time among various products, and plan for future capacity needs To maintain right balance between Demand and Supply

Q. 3 Inventory Control Techniques A/C book

304 Q. 1 features of erp system in production

Enterprise resource planning (ERP) is business management softwareusually a suite of integrated applicationsthat a company uses to manage business processes, including: Product planning and development Manufacturing Marketing and sales Inventory management Shipping

ERP provides an integrated real-time view of core business processes, using common databases maintained by a database management system.

features
ERP (Enterprise Resource Planning) systems typically include the following

features:

An integrated system that operates in (or near) real time without relying on periodic updates A common database that supports all applications A consistent look and feel across modules Installation of the system without elaborate application/data integration by the Information Technology (IT) department, provided the implementation is not done in small steps

Accommodating variety: The ERP software solution provides both multi lingual and multicurrency capabilities. Also multi mode manufacturing and multi-facility provide the capability required to compete and succeed globally. Integrated Management Information: Todays business managers use ERP for Flexible reporting tools to extract the information as and when needed without depending on an information system department (MIS department). Electronic data interchange (EDI) to electronically accept customer information like purchase orders, schedule amendments, or cash payment and electronically send order acknowledgement and invoices to customers. Imaging to provide the ability to display drawings or specification, ability to- store original sale orders, purchase orders, and quotations, and contracts. Data base creation: Starting with time and attendance reporting, monitoring and control of machines and post-sales statistics.

Q.