Lecture 1 project and production management an overview. Key metrics to measure inventory management success inventory turnover part 2. A successfully implemented inventory control program takes into account such things as purchasing goods commensurate with demand. Inventory control eoq model reorder point lecture 2. The management of every econo mic sector gained interest after world war ii to study inventory management system due to much risk factor and uncertainty. Inventory management system and performance of food and. He has secured substantial number 27 till date of industry and research grants. A basic method of dollar control begins at the cash register, with sales receipts listing the product. Shortcut method inventory control models abc analysis. Inventory management, service level and safety stock alin constantin radasanu alexandru ioan cuza university, iasi, romania, alin. Good inventory management practices in the company help by adding value in terms of having control over and maintaining lean inventory. Mar 01, 2020 key metrics to measure inventory turnover last month we began our discussion of key inventory metrics with the customer service level. It is a question that must be asked and answered at each business by someone who understands the unique needs of that business.
In india, moocs are now part of the education system. Nptel provides elearning through online web and video courses various streams. Describe the meaning and objectives of inventory management. This proposed project aims at inventory control in the restaurant and catering industry. Learn how to implement successful inventory management strategies in your company and do much more in these insightful articles. Pdf inventory management example problems with solutions. Dollar control systems show the cost and gross profit margin on individual inventory items. This technique of inventory control is also known as always better control technique. Articles on inventory management management study guide. An introduction to mathematical optimal control theory. Arun kanda, department of mechanical engineering, iit delhi. Priority planning determines what materials are needed and when they are needed in order to meet customers demands.
Reference production planning and control notes pdf ppc notes pdf. Quality control introduction the focus on quality is one of the hallmarks of the lean production system. Discuss types of inventory cost within the materials management forums, part of the publish upload project or download reference project category. The good, the bad, and the ugly what is the best way to manage your inventory. Production planning and control pdf notes ppc pdf notes. Production and operations management will introduce students to the many. These are the basic issues that we will be talking about in this particular lecture. Aug 04, 2015 dollar control systems show the cost and gross profit margin on individual inventory items. And these parameters have a is closely linked with the working stock like say when you determine the order quantity or the order size. Compilations of study notes from different chapters of cost accounting.
Inventory management example problems with solutions. Every organization tries to maintain optimum inventory to be able to meet its requirements and avoid over or under inventory that can impact the financial condition. Production and inventory management journal articles a conceptual framework for inventory management. The term inventory control is used to cover functions which are quite different and are related to one another only in that they both require the maintenance of adequate records of. Unit 1 introduction to inventory management learning objectives after completion of the unit, you should be able to. This research work develops a productioninventory model for an article that deteri. He is a certified lead assessor for iso9001 registration, and a member of informs and iimm, and a fellow of waps and ie india. While the customer service level is probably the most important inventory measurement, inventory turnover is often the most. If you are preparing for civil service examination, these notes will definitely help you to get an overall idea about the subject. Management of inventory systems from indian institute of technology.
Kagira 2012 also noted that kenya tea development agency managed factories faced problems of fluctuating inventory levels, poor forecasting and lack of proper inventory control systems due to poor strategic inventory management techniques leading to declined performance. Lecture series on project and production management by prof. Abc analysis stands for always better control analysis. Forecast demand independently for each item based on usage history establish lot sizes independently for each item based on demand forecasts establish safety stocks independently for each item based on forecast errors which make the following assumptions. Evans department of mathematics university of california, berkeley. There are various types of inventory management techniques which can help in efficient inventory management. Impact of inventory management on the financial performance of the firm vipulesh shardeo1 1m.
A study on relationship between inventory management and company performance. Manufacturing control shop floor control, inventory control, quality control. Today, many if not most supply chains are feeling at least several of these sorts of network pressures. Five strategies for improving inventory management. Friends, welcome to session 52 in our course on operations management and currently. Inventory control policies for timedependent deteriorating. Introduction to inventory and materials management. Inventory management is an essential part of every business. The term inventory control is used to cover functions which are quite different and are related to one another only in that they both require the maintenance of adequate records of inventory as well as receipt and issue corresponding to. Syed jamal abdul nasir bin syed mohamad, nurul nadia suraidi, nabihah amirah abd. We can also be defined inventory as a comprehensive list of movable items which are required for manufacturing the products and to maintain the plant facilities in working conditions.
Techiem,department of management studies, indian school of mines,dhanbad, india abstract. To apply scientific inventory control it is important to have, as much as possible, an estimate of demand. Quality is a major enabler of reduced costs, both directly through reductions in the quality assurance function and the cost of rework, and indirectly as it facilitates the reduction of inventory buffers. Waters 2008, in his view of inventory regards it as a. Inventory control study notes for mechanical engineering. In the present era, where there is a competitive world in the area of business it is very important to control various costs to sustain in the market. The impact of inventory management practices on financial. Inventory management is the branch of business management that covers the planning and control of the inventory.
Pdf a study of inventory management system case study. As you are aware of the course called the management of inventory systems, it is a 30 hour course with 12. In this video the complete inventory control topic is explained in a very easy manner with all formulas. Inventory control system is the process of managing inventory in order to meet customer demand at the lowest possible cost and with a minimum of investment, byoungho 2004. Apr 23, 2008 lecture series on project and production management by prof. Pgchsm 20 inventory control techniques page 3 inventory control focuses on the process of movement and accountability of inventory. Inventory control is the process by which inventory is measured and regulated according to predetermined norms such as economic lot size for order or production. Kharagpur and worked for 25 years as a teaching faculty at iit, kharagpur. During the first 4 lectures on the selective inventory management, we have discussed in detail the possible types of the classification of the systems or inventory. Introduction the term inventory means the value or amount of materials or resource on hand. Sep 20, 2019 inventory is defined as the list of movable goods which helps directly or indirectly in the production of goods for sale.
Impact of inventory management on the financial performance. Inventory planners main job consists of analyzing demand and deciding when to order and how much to order new inventories. Manual work systems a worker performing one or more tasks without the aid of powered tools, but. Study notes on cost accounting your article library. A basic method of dollar control begins at the cash register, with sales receipts listing the. In recent years this search has led to many changes.
The below given notes will help you for prepare for various competitive examination. Pdf inventory management is a challenging problem area in supply chain management. An introduction to mathematical optimal control theory version 0. Now, coming out of the recession, companies are again facing a number of issues that are adding to their supply chain network complexity, which serve as headwinds to inventory reduction. He has guided thirteen ph d thesis in these areas and published papers in journals of emerald, sage, springer, taylor and francis, elsevier, and inderscience. Inventory must be viewed as a positive contributor to corporate profitability. This consists of strict polices and processes in regards to. Abc analysis is an analytical method of control which aims at concentrating efforts on those areas where attention is needed most. Focusing on lowconsumption items by peter wanke integrating fmea with the supply chain risk management processes to facilitate supply chain design decisions by v. Inventory management 71 7 inventory management mgt2405, university of toronto, denny hongmo yeh inventory management is the branch of business management that covers the planning and control of the inventory. There are many studies that emphasize as a first objective of inventory management to minimize the value invested in inventory because it has a direct impact on return on assets.
In order to understand how people use our site generally, and to create more valuable experiences for. Such a large domain would result in an equally as large scope of development. As you may be aware that the safety stock is one of the important parameters to be determined for any kind of a inventory control systems, particularly under risk. A study on relationship between inventory management and. It is an inventory management technique where inventory items are classified into three categories namely. Pdf this article provides a comprehensive introduction about the lead time. In the previous chapters, we have discussed priority and capacity planning and control. Rao tummala, tobias schoenherr, cscp and thomas harrison. As a result we narrow our software down to our case study of an outlet of guckenheimer concentrating only on the basic resources utilized in inventory control of the outlet. Originalityvalue this paper catalogs the inventory management articles published in the major logistics journals, facilitates the awareness and appreciation of such work, and stands to guide future inventory management research by highlighting gaps and unexplored topics in the extant literature. Five strategies for improving inventory management across.
Inventory control can be defined as the system used in a manufacturing concern to control the firms investment in. Optimization of effective inventory new scholarlink research. Inventory control inventory models om20 p r o d u c t s i n i n v e n t o r y time q inventory control simple in theory one product, level demand, fixed delivery time etc. Inventory management and supply chain management are the backbone of any business operations.