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entory 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 stock shortage cost and purchasing cost ordering cost carrying cost and find out to the most economic order quantity (EOQ) ? The mon formula to pute EOQ is: EOQ = Square root (2Co*D/Pi) 3/29/2023 18 Copyright: International Trade Centre Module 11 —— Managing Inventory Recall and resume ? Mentoring movements ? Measuring evaluating inventory ? Receipt issue of inventory ? Systems to replenish inventory ? How much to order 3/29/2023 19 Copyright: International Trade Centre Module 11 —— Managing Inventory Unit 3 Managing and forecasting inventory ? Leadtime management ? Enterprise resource management ? Demand forecasting techniques 3/29/2023 20 Copyright: International Trade Centre Module 11 —— Managing Inventory Unit 4 Inventory Planning ? Service level policies ? Categorisation techniques ? Trace