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3/29/2023 12 Copyright: International Trade Centre Module 11 —— Managing Inventory Unit 2 Warehouse and Inventory Operations ? Mentoring movements ? Measuring evaluating inventory ? Receipt issue of inventory ? Systems to replenish inventory ? How much to order 3/29/2023 13 Copyright: International Trade Centre Module 11 —— Managing Inventory Mentoring movements ? For each location where materials are held, stock record balances need to accurately reflect what is physically in inventory. ? In addition, inventory balances held in the accounting records need to be capable of being reconciled with physical stock counts undertaken during audit and periodic stocktaking activities. ? So mentoring movements is necessary to keep the inventory balances to be correct. 3/29/2023 14 Copyright: International Trade Centre Module 11 —— Managing Inventory Receipt issue of inventory Notification of goods receipt Receipt of copy of purchase order Acknowledgement Schedule/plan delivery Delivery Storage/put away Inspection Unloading Receipt 3/29/2023 15 Copyright: International Trade Centre Module 11 —— Managing Inventory Receipt issue of inventory – cont. Cost allocation User determines requirement Requisition authorized Presented to stores Identification of the goods Adjustment of stock records Delivery / collection Picking Issue 3/29/2023 16 Copyright: International Trade Centre Module 11 —— Managing Inventory Systems to replenish inventory ? Reorder level (fixed order quantity, variable order interval) ? Periodic review (fixed order interval, variable order quantity) ? Demanddriven lean supply systems (orders placed in the precise quantity and time required for production) 3/29/2023 17 Copyright: International Trade Centre Module 11 —— Managing Inventory How much to order ? Balance amongst the cost of holding s