INVENTORY MANAGEMENT * Types of Inventory * Inventory Costs * Independent – Demand Items and Inventory Costs * Inventory Monitoring * Production Management Systems * Other Issues in Inventory Management What is Inventory? * An investment in the sense that it requires that the firm tie up its money‚ thereby forgoing certain other earnings opportunities. * The higher a firm’s average inventories‚ the larger the dollar investment and cost required and vice
Premium Inventory Economic order quantity
A STUDY ON INVENTORY MANAGEMENT OF VIKI INDUSTRIES PRIVATE LIMITED‚ CHENNAI INTRODUCTION As every business concern irrespective of size‚ nature and age needs an adequate level of inventory to carry out business operations and survive. Inventory becomes an important and integral part of business inadequate inventories means interruption of production and sales operation
Premium Inventory Steel
Case Study Inventory The Cost of Inventory The general principle for cost inclusion into inventory for US GAAP and IFRS is similar but not exactly the same. First let us look at US GAAP. The basis of accounting for inventories is “cost‚” which is explained in ASC 330-10-30 paragraph 1 as “the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location.” These costs are divided into two different categories‚ the
Premium Inventory Cost Costs
Questions Answers - Inventory Management [12:27 PM | ] 1. What is inventory control? Answer: Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition‚ carrying ordering and stock-out costs to their lowest possible levels. However a store would need to have enough inventories to meet any needs of its customers. 2. What does inventory affect in a store? Answer: Inventory levels and their
Premium Economic order quantity Reorder point Supply chain management
Topic7 Inventory 1 Identify the primary authoritative guidance for the accounting for inventories. What is the predecessor literature? FASB ASC 330 Inventory provides primary authoritative guidance for the accounting for inventory. The predecessor literature about it is Accounting Research Bulletins (ARB) No.43 Chapter 4‚ paragraph 4 (Issued June‚ 1953) and Statement of Financial Accounting Standard (FAS) NO.151 Inventory cost- an amendment of ARB No.43‚ Chapter 4 (Issued November‚ 2004).
Premium Inventory Asset Price
Introduction and its Background Introduction Inventories are very essential to meet the shareholder needs and demands for financial information. A computerized inventory stock system helps the companies to keep track of their inventory from initial purchase to final sale automatically. It may contain quantities‚ description‚ price‚ purchasing of items‚ the stock – in and out‚ total amount of products on initial purchase and making reports on the inventory. A store sells certain products
Premium Inventory
Studies Korean Red Ginseng Enterprise – Sales and Inventory System (J. De Leon‚ M. Ferrer‚ 2001) Under the Koread Red Ginseng Enterprise Sales and Inventory System‚ the researchers came up with a computerized sales and inventory system. The proponents used database to easy access of files and for easier and faster processing of the selling and inventory transaction. The program was designated to generate reports such as monthly reports‚ inventory reports‚ sales invoice and list of items. In connection
Premium Sales Marketing Ginseng
Manual inventory tracking compared with inventory tracking systems on your computer. A good inventory tracking system accomplishes four things: 1) it shows what merchandise is in stock‚ 2) it shows which items are on order‚ 3) it notifies the retailer when ordered merchandise is scheduled to arrive‚ and 4) it tells what merchandise has been sold. This information is used to plan future purchases‚ to determine what is selling and when it is selling‚ and it helps determine what items need to be reordered
Premium Point of sale
Dell – Kelby Allen The just-in-time (JIT) inventory method is a method of inventory management. “The goal of these concepts‚ contrary to popular belief‚ is not to reduce inventory‚ although that ’s an appealing side benefit. Instead‚ JIT (like its imitators) is a continual process aimed at eliminating waste and solving problems throughout the supply chain” (Minahan‚ 1997‚ p. 45). Since its inception in 1984‚ Dell Corporation‚ Inc. has set itself apart from competitors through innovation and creativity
Premium Supply chain management Supply chain Management
for the use of funds for investments within the company. In addition‚ over the past year $600‚000 has been the average investment in the company’s inventory. Accounting information shows that a total of $24‚000 was spent on taxes and insurance related to the company’s inventory. In addition‚ it has been estimated that $9000 was lost due to inventory shrinkage‚ which included damaged goods as well as pilferage. A remaining $15‚000 was spent on warehouse overhead‚ including utility expenses for
Premium Standard deviation Capacity utilization Arithmetic mean