There are some techniques which help the company to control the inventory management by reducing the losses and time
of delivering the goods to customer of a company. Some of the techniques are:
1) Just In
Time: In this technique the stocks are
ordered when it is demanded by customer or required to fulfil the market
demand. It reduces the carrying cost.
2) ABC
Analysis: In this technique the stocks are
classified into A items, B items and C items.
a) A items: The stocks which are high in value but low in
quantity and needed constant supervision is come under this category.
b) B items: The stocks which are moderate in value it
means not high or not low and also moderate in quantity and needed moderate
supervision is come under this category.
c) C items: The stocks which are low in value but high in
quantity and needed very less supervision is come under this category.
3) Bulk
shipment: In this technique the goods are
ordered in bulk and which reduces the ordering cost but increases the carrying
cost of those goods.
4) Drop shipping: It
is an agreement in which the details
of the stocks required by the customers are transfer to the manufacturer and
then they directly delivered the goods to customers.
5) XYZ analysis: In
this technique the stocks are classified according to the demand of a stock in
a market. The stocks are divided into three categories:
a)
X
items: The stocks which sold out more frequently than
other stocks in a year are come under this category.
b)
Y
items: The stocks which are sold less than the X items in
a year.
c)
Z
items: Under this technique the stocks are sold less
frequently in a year.
6) VED Analysis:
Under this technique the sticks or materials are divided into 3 categories:
a)
V
(Vital) items: The stocks under this category are vital
for production purpose. Without that stocks or materials the production is not
possible.
b)
E
(Essential)items: Under this category the materials are
very essential without it company faces loss.
c)
D
(Desirable) items: Under this category the materials are
desirable for company but without it company doesn't face any losses.
7) SDE Analysis:
Under this technique the materials are also divided into 3 categories:
a)
S
(Scare) items: In this category the materials are
scare and they are very rare in a market.
b)
D
(Difficult) items: The materials in this category are
very difficult and not easily available in a market.
c)
E
(Easy) items: The materials in this category are
easily available in a market. It can easily available in local shop also.
8) HML Analysis:
Under this technique the stocks or materials are divided according to the price
per unit. The stocks are divided into 3 categories:
a)
H
(High) items: In this technique the materials whose unit
price is high is come under this category.
b)
M
(Medium) items: In this category the stocks per unit
price is not high or not low.
c)
L
(Low) items: In this category the materials per
unit price is very low.
a)
Seasonal
items: The demand of the stocks is for whole year but
they are available in specific season only.
b)
Off
Seasonal items: Those stocks which are available in
whole year but there demand arises only in specific season.
10) FSN Analysis: Under
this technique the stocks are divided according to the consumption of the
stocks by the customers. The stocks are divided in 3 categories i.e. fast
moving items, slow moving items and non moving items.
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