What is the Inventory?

Inventory is materials that are kept until needed. These materials are either raw materials, semi-finished materials, parts of an assembly product, spare parts, stationery, etc. These materials are kept in stores or warehouses and are arranged in an orderly manner.

Organizing and classifying materials in stores

The company or establishment stores many different materials in warehouses
Thus, the warehouse is sorted and divided into specific areas to store all specific materials with a specific area
For example, spare parts alone, raw materials alone, and completed materials alone
And within each category is a classification
For example, there are many different products, so the similar ones are stored together, and so on

Warehouse design

The warehouse is planned and divided according to the quantity and types of materials that are stored in it
The design also takes into account safe storage conditions such as ventilation, lighting, lighting, and so on
There are three types of designs
platform
It is a pallet for carrying materials stacked on top of each other
shelves
It is an iron shelves consisting of several layers for storage
Inclusions
Inserts in which are small boxes to keep materials and small pieces

Stock control

Inventory control is the control of the quantity of materials stored
Where all the receiving and disbursing operations of the materials are recorded
When the stock reaches the minimum level, communication takes place
With the Purchasing Department to issue a purchase order
In the event of stockpiling and staying for a long time, it will be notified
Materials and production management to stop production for a while
Sell the stored quantity
Control is also represented by examining materials and the surrounding environment
From the physical and chemical conditions that affect the materials
and cause damage

Classification and coding of stored materials

Materials are classified in case the stored materials are many
Therefore, to facilitate search and access
Where in some companies there are more than a thousand types of pieces
It is stored in the company’s warehouse
Coding A code of letters and numbers that distinguishes each type and determines its location in the store
And with the code, it is easy to follow and control the item

Receipt and disbursement

There is a lot of movement in the stores, as the warehouse receives a lot of materials
And deposited in warehouses, as well as disbursing materials to the production department and points of sale and maintenance
The store shall make a ledger record in which all receiving and disbursement operations are recorded
Any item inside the store and submit reports to the relevant departments and management

economic quantity to order

Economic quantity of demand meaning
When we need a certain quantity of materials for the store for a certain year
Shall we buy it all at once at the beginning of the year?
Or divide it into batches during the year
Purchasing items at once causes problems
Large storage costs because you need a lot of space and a lot of material control
The possibility of damage to the materials because they are in the warehouse
Possibility of lower prices for the materials we have purchased and stored
Hence the economic quantity suggests
To import several orders during the year and not to import at once
It balances you between storage costs and purchase order costs
So buy a small amount until it ends and then buy the second batch to me
To finish, then the third, and so on, until you finish the required quantity during the year
There is a law to calculate the number of order quantities during the year
Provided that the annual demand and purchase order costs are specified
and storage costs per unit

Inventory records and reports

Warehouse records are records of material entry and exit control for stores
Inventory reports showing the status of stock, inspection, and quantity
Requesting new quantities or reporting overcrowding