PRODUCT/

SERVICE

MANAGEMENT &

DISTR

IBUTI

ON

NI C

K M

ER

CU

RO

/ EV

EN

KL I P

PL E

/ AU

ST

I N M

OO

RE

INVENTORY

• Accurately taking inventory is one of the most important tasks

• It allows companies to see…

- how much of an item is sold

- if their employees are stealing from them

- if an item is popular (how much of it is bought and how fast)

• By regularly taking inventory companies are able to compare results for their last inventory

INVENTORY METHODS• Physical Inventory - is a process where a business

physically counts its entire inventory.

• Perpetual Inventory - A method of accounting for inventory that records the sale or purchase of inventory in near real-time, through the use of computerized point-of-sale and enterprise asset management systems.

• Unit Control - Inventory control system in which stock items are tracked using bin tickets and physical inventory inspection.

• Dollar Control System - are systems used in inventory management that reveals the cost and gross profit margin on individual inventory items.

• Basic Stock - Level of inventory that must be maintained to meet current sales volume or consumption, while taking order lead time into account.

• Model Stock Plan - mined assortment of merchandise which is in proper balance to the sales of the store

STEPS FOR TAKING ACCURATE INVENTORY

Step 1: Develop processes for material handling in the organization.

Step 2:Train employees to use the processes.

Step 3: Monitor employees and implement Audits.

Step 4: Implement a cycle counting procedure.

Step 5: Develop a procedure for reconciling discrepancies.

Step 6: Plan annual physical inventories. (Every Month)

STOCK INVENTORY SPREADSHEET