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Jracking (China) Storage System

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Contact us: Jiang Air

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Tel: 86-25-69615810

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Jracking Introduces 4 Inventory Management Methods

- Jul 12, 2017 -

1. ABC control method

The basic points of ABC control method is: The whole inventory of enterprise can be divided into A, B, C three. In the management, the high amount of A class material, as a key to strengthen management and control; B material according to the usual methods of management and control; C materials varieties of quantity, but of little value you can use the most convenient method to manage and control.

Control of A class of inventory, it need to calculate the economic order quantity of each project, as may be appropriate to increase the number of orders, in order to reduce the backlog of inventory control. Inventory for the B class, but also advance for each project to calculate the economic order quantity and order, but also can share the perpetual inventory cards to reflect the dynamic inventory. Control for class C stock, because of their large number, but the price is very low, the inventory cost is low, therefore, may be appropriate to increase the number of each order, reduce the number of orders throughout the year.

2. Ordering management method

The reorder point is the number of units used to specify the start replenishment order strategy. Once the inventory is lower than the reorder point, it needs to supply order. When there is uncertainty in the quantity demanded or the completion cycle, the appropriate safety stocks should be used to cushion or compensate for the uncertainties.

Reorder point = purchasing lead time consumption + safety stock.

Enterprises in order to ensure the smooth progress of production and operation activities, you must buy several days in advance of inventory, the number of days ahead of schedule is the lead time. Generally, the lead time of an order is equal to the delivery date. In advance of the purchase of the conditions, the enterprise once again issued an order, fashionable inventory of inventory that is reorder point.

3. Inventory checking management method

To conduct a comprehensive control through the inventory in the warehouse goods information, understand the quantity and quality of goods within the actual inventory database.

4. JIT method

The basic principle of JIT is using demand to determine the supply and using demand to determine the production. Supplier accords to the requirements of demander, in accordance with the requirements of the party's varieties, specifications, quality, quantity, time, place and other requirements, and deliver materials or materials to a designated place.

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