Inventory control, when well-organized, can be a streamlined process, in which all the records tally with each other, and the inventory manager can instantly give an account of any random product, if required. However, when we are talking of open-stock inventory, the tables turn, and it is no longer easy to maintain accurate records of consumed products versus available products. An open-stock inventory refers to an inventory that deals with a bulk of products that are usually difficult to count, and are mostly inexpensive, yet are part of product development process.
The products in an open-stock inventory could be anything from a nails to office stationery. These products have been a nightmare for inventory managers, as it is virtually impossible to determine reorder quantities for them, and maintain stock levels with the accuracy that is normally common place in an inventory. The flow of these products is determined by the frequency of their need by the user, and even though they might be seemingly unimportant individually, their shortage can halt the entire production.
Ideally, the controlling of an open-stock inventory should include a way to be able to record every material disbursement that takes place from the inventory, in order to be able to predict when the need for a fresh supply arises. However, considering how these materials are used in bulk and are individually of little value, it is nearly impossible to impose strict regulations to make sure that each of these materials that leave the store is accounted for. This would mean asking customers to record the accurate item number when buying nails in bulk, or asking workers to maintain a record of every nut and bolt that they use.
Since none of this is feasible, the most practical way of controlling an open-stock inventory, is to devise a way to track the rate at which the open stock needs to be replenished. This means dividing the supplies into on-hand quantity and container quantity, with the former being the amount of material available in bulk storage, and the latter being the open-stock material available in open containers for usage.
Each time a box of material is moved from bulk storage to open-stock, it should be accounted for, and hence the future demand for each item can be forecasted. The usage history for each product, which is the number of containers that were dispatched from bulk storage during a particular period, should be monitored. Also, any unexpected increases in replenishment should be looked into, to detect pilferage or any other problem in the inventory.
For customized inventory management systems for your business or to know more about stock inventory management, visit McLane Logistics Technology at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.
The products in an open-stock inventory could be anything from a nails to office stationery. These products have been a nightmare for inventory managers, as it is virtually impossible to determine reorder quantities for them, and maintain stock levels with the accuracy that is normally common place in an inventory. The flow of these products is determined by the frequency of their need by the user, and even though they might be seemingly unimportant individually, their shortage can halt the entire production.
Ideally, the controlling of an open-stock inventory should include a way to be able to record every material disbursement that takes place from the inventory, in order to be able to predict when the need for a fresh supply arises. However, considering how these materials are used in bulk and are individually of little value, it is nearly impossible to impose strict regulations to make sure that each of these materials that leave the store is accounted for. This would mean asking customers to record the accurate item number when buying nails in bulk, or asking workers to maintain a record of every nut and bolt that they use.
Since none of this is feasible, the most practical way of controlling an open-stock inventory, is to devise a way to track the rate at which the open stock needs to be replenished. This means dividing the supplies into on-hand quantity and container quantity, with the former being the amount of material available in bulk storage, and the latter being the open-stock material available in open containers for usage.
Each time a box of material is moved from bulk storage to open-stock, it should be accounted for, and hence the future demand for each item can be forecasted. The usage history for each product, which is the number of containers that were dispatched from bulk storage during a particular period, should be monitored. Also, any unexpected increases in replenishment should be looked into, to detect pilferage or any other problem in the inventory.
For customized inventory management systems for your business or to know more about stock inventory management, visit McLane Logistics Technology at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.
