Inventory control systems, General characteristics of inventory control systems - Logistics

Chapter 19. Inventory control systems

19.1. General Characteristics of Inventory Control Systems

Inventory management provides for the organization of control over their actual state.

The control of the state of reserves is the study and regulation of the level of industrial and technical supplies, consumer goods, etc. in order to detect deviations from the norms of reserves and take operative measures to eliminate deviations.

The need to monitor the state of the reserves is due to increased costs in the event of the actual size of the stock out of the limits stipulated by the stock norms. The control of the state of the stock is carried out on the basis of inventory accounting data and can be carried out continuously or through certain periods.

In practice, various control methods are applied, which can be classified according to the following characteristics:

o verification order: periodic or continuous;

o Threshold stock level: presence or absence;

o The quantity of the ordered lot: the same or different.

An approximate classification of inventory control systems is shown in Fig. 87.

Fig. 87. Classification of inventory control systems

Inventory control and order generation for the supplier can be carried out by one of the systems below.

Operational management system . At certain intervals, an operative decision is made: "order & quot; or & quot; do not order & quot ;, if you order, then how many units of goods (Figure 88).

Fig. 88. Operational management system

Uniform Delivery System . At regular intervals ordered a constant number of units of goods (Figure 89).

The system of replenishment to the maximum level . At the same time, at regular intervals, a batch is ordered; the number of units of goods is equal to the difference between the established maximum level of stocks and the actual level of stocks at the time of verification. The size of the order is increased by the amount of the stock that will be sold during the order execution period (Figure 90).

Fig. 89. The system of supplying an equal order through equal time periods

Fig. 90. The system of replenishment to the maximum level

A fixed-order system with periodic checking the actual stock level (with a stock level threshold). The actual inventory level is checked at regular intervals. The decision to order a constant volume of goods is accepted, provided that the commodity stock at the time of verification is less than or equal to the established threshold level of stock. Otherwise, the decision is taken & quot; do not order & quot; (Figure 91).

Fig. 91. A system with a fixed order size with a periodic check of the actual stock level (with a threshold level of stock)

A fixed order size system with continuous checking the actual stock level (with a stock level threshold).

At the moment of reaching the threshold value, a batch of constant volume is ordered (Figure 92).

Fig. 92. A system with a fixed order size with a continuous check of the actual stock level (with a threshold level of stock)

A two-level system with periodic checking the actual stock level (with a stock level threshold). The actual inventory level is checked at regular intervals. If it is less than the minimum or equal to it, then the decision is made to order a batch equal to the difference between the maximum stock of goods and the actual stock at the time of the check with the increase for the expected sale during the execution of the order. If the actual commodity stock is more than the minimum, then the decision is taken "not to order & quot; (Figure 93).

Fig. 93. A two-level system with a periodic check of the actual stock level ("minimum-high" system)

A system with two levels at continuous checking the actual stock level (with a threshold level of stock). The decision to order a batch is taken when the threshold is reached. The size of the ordered batch is assumed to be equal to the difference between the maximum stock of goods and the threshold level, with an increase in the expected sale during the execution of the order (Figure 94).

Fig. 94. Two-level system with continuous verification of the actual stock level (with a threshold level of stock)

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