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Submitted By :
1. Foqia Tariq (6512/s14)
2. Samia Javed (6515/s14)
3. Nadia Shafiq (6534/s14)
4. Fatima Sultan (6533/s14)
Fatima sultan
Inventory Planning
&
Control
Inventory Planning
The process of determining the optimal quantity and timing
of Inventory for the purpose of aligning it
with sales and production capacity .
customer satisfaction
Forecasting Needs
Controlling Costs
Successful Storage
Inventory planning
Advantages disadvantages
You know your stock levels. It can waste a lot of effort if not
You can conduct stock rotation. implemented and maintained correctly.
You can optimize and reduce stock of It doesnt replace incompetent
items that dont move that quickly. management.
You can move you quick moving items
to the front thereby speeding up It can be very expensive and the return
picking. on investment can take a long time.
Types of inventory
Seasonal inventory
Decoupling inventory
Cyclic inventory
Pipeline inventory
Safety stock
Seasonal inventory
Components, material, or goods kept at hand to meet
seasonal fluctuations in demand or to meet the shortfall caused by
erratic production. Also called anticipation inventory, build stock,
seasonal inventory, or seasonal stock.
Decoupling inventory
In manufacturing concern, plant and machinery should always
keep running. The act of stopping machinery, costs to the
entrepreneur in terms of additional set up costs, repairs, idle
time depreciation, damages, trial runs etc.
Cyclic inventory
It is a type of inventory accumulated due to ordering in
lots or sizes to avoid carrying the cost of inventory. In
other words, it is the inventory to balance the carrying
cost and holding cost for optimizing the inventory
ordering cost as suggested by Economic Order Quantity
Pipeline inventory
(EOQ).
also known as pipeline stock is used to refer
to those goods that have left firms
Buffer inventory warehouse but are still in company's
distribution chain as they are yet to be
Buffer inventory is the inventory kept or purchased for the bought by ultimate consumers
purpose of meeting future uncertainties. Also known as
safety stock, it is the amount of inventory besides the
current inventory requirement
Foqia tariq
Inventory Costs
Types of Inventory Costs:
Ordering (purchasing) costs
Inventory carrying (holding) costs
ABC classification
ABC analysis (Inventory)
Dependent Demand
Independent Demand Dependent Demand