The hottest inventory management is an important p

Inventory management is an important part of material management

inventory is money and an important matter in financial statements. Managing inventory well is managing the money of an enterprise. Inventory is not isolated, its existence is mainly determined by the plan, is the result of the plan, and is the support of the plan. Inventory management is an important part of material management and an important part of controlling logistics

1. Material management

inventory management and purchase management are the two key contents of material management. For most traditional enterprises in China, there are not many organizations to set up material management, but it is more common in joint ventures and foreign-funded enterprises

1.1 the importance of material management

the importance of material management can be discussed from two aspects

1. Systematically manage all kinds of materials in the enterprise

as we mentioned earlier, materials have three management characteristics, namely relevance, liquidity and value. In terms of relevance, various production related materials restrict and influence each other in quantity and time required. Therefore, enterprises must systematically manage materials. The lack of information communication between business departments is one of the main reasons for the excessive occupation of inventory funds in traditional management

the American Association for production and inventory management (APICS) vocabulary defines material management as: "material management centralizes all management functions that support the whole process of logistics, from procurement, production materials under internal control, to the planning and control of all work in process, and then to the warehousing, delivery and distribution of final products". In addition to purchased parts, parts and final products, the materials mentioned here also include materials for maintenance, repair and operation (maintenancerepa1 is "already" iroperatingsupplies, referred to as MRO materials)

2. Supply chain management of logistics and logistics information

as mentioned above, the second management feature of materials is the liquidity of materials, which must be in a flow state at all times, and stagnation is a waste. Starting from the principle of supply chain, the production activity of an enterprise is a material flow process. If the flow of materials is smooth, it means that the products of the enterprise are marketable and the market situation is very good. If the logistics volume is large, it means that the sales volume of the enterprise increases. In other words, the benefit of the enterprise is directly proportional to the logistics speed and logistics volume

in terms of planning, if the production plan is completed, a certain number of materials will be generated and inventory records will be formed. In order to implement the production plan normally, there must be a certain amount of available inventory materials to meet the needs of production on time and in quantity. This is the meaning of "production and inventory management" in foreign countries, which highlights the relationship between production and inventory, and explains that inventory is the product of planning

generally speaking, material management has three meanings

● ensure smooth logistics in the supply chain and manage materials from the perspective of logistics

● support and monitor the production plan

● materials are valuable (the third management feature of materials), so it also includes the planning and control of funds

note that the meaning of material management should not be confused with the "material management" or "inventory management" subsystem in the software, Just don't compare the philosophy of JIT with that of "JIT" in software subsystem "'subsystems are confused.

1.2 material manager

material management is a system management of the data of the National Bureau of statistics of materials. Therefore, some enterprises that implement the MRP II system have a materialmanager responsible for the business related to materials, such as production control, inventory control, material handling, transportation inside and outside the factory, outsourcing, waste recycling, procurement and supply, warehouse inside and outside the factory, return processing, etc Unified management. Some enterprises (especially assembly production enterprises) even put material requirements planning (MRP) within the scope of material management. Doing so is conducive to coordinating the work of various businesses, ensuring the smooth implementation of the plan, and reducing the phenomenon that various functions are divided, not connected with each other, doing their own things, and shifting responsibilities in traditional management, so as to ensure the balanced flow of materials and maintain the smooth business process

a common form of material management organization is shown in Figure 18.1

it can be seen from the figure that there are few management levels in this form, which is equivalent to the deputy factory level functional managers directly leading the work related to the business system, and the material manager is one of them. The "MRB" in the figure is a kind of materialreview board (MRB), which is dedicated to making decisions on the treatment of materials with quality problems or unqualified. For example, judge whether it can meet the technical and quality requirements through rework or repair, or accept it under concession, or downgrade it for other purposes. If the repair cannot be remedied, it will be rejected or scrapped, and the cost will be determined at the same time. MRB department belongs to the field of quality management. It is a department that reviews and deals with nonconforming products and implements the requirements of article 4.13 of IS09001 standard

some enterprises in the United States were surveyed in the early stage. In 1967 (the initial stage of MRP), only about 3% of enterprises set up material managers, but by 1978 (the initial stage of MRP Ⅱ) it had increased to 50% of enterprises set up material managers, indicating that this form of organization can achieve good results in improving business processes

the main responsibilities of the material manager are summarized as follows: not only to ensure the supply, ensure the normal flow of materials according to quality and quantity as planned, and meet the needs of customers and the market, but also to do everything possible to reduce costs, reduce inventory, and improve the number of inventory turnover, that is, to speed up capital turnover. These are two contradictory goals, and the main task of the material manager is to deal with this contradiction and balance the inventory level and service level. Specifically, there are some workflows as follows

(1) determine the policy and strategy of material management:

● work with the production, planning and financial departments to assist the enterprise leaders to determine the inventory level and capital limit of various materials:

● determine the ABC classification principle

● determine the order batch rules and adjustment factors

(2) master material information and monitor plan implementation. Take the timely and accurate maintenance of material information as a routine work, predict possible problems through the information, and put forward suggestions and measures to prevent them

(3) work with the design and cost departments to conduct value analysis and cost control when selecting materials

(4) continuously improve the quality of material management personnel to ensure smooth logistics

(5) submit various material reports as required

2. Inventory management

inventory information has a direct relationship with the financial balance sheet and income statement. Inventory is a current asset that can be exchanged and sold, generally accounting for about 20 ~ 60% of enterprise assets. In the income statement, it appears in the form of the cost of selling products, which is an important factor to explain the income of enterprises. Inventory reflects the financial condition of an enterprise. Therefore, inventory management is very important, and it can not only be regarded as a problem of keeping a good inventory account

inventory management varies according to the level of planning and control (independent demand parts, related demand parts), material objects (products, work in process, semi-finished products, raw materials, MRO), ABC classification of materials, status in the supply chain (supply, manufacturing, distribution), and the length of material supply cycle. In the supply chain, inventory and transportation may occur between an economic entity in Shanghai

in APICS vocabulary, the term "inventory" is defined as "all kinds of materials stored for the purpose of supporting production, maintenance, operation and customer service; including raw materials and work in progress, maintenance parts and production consumables, finished products and spare parts"

therefore, inventory management mainly refers to "the business related to the planning and control of inventory materials", with the purpose of supporting production operations. Be careful not to confuse it with warehouse management system (WMS). The warehouse management system mainly aims at the management of warehouse or warehouse layout, material transportation and handling, storage automation, etc. The two concepts are different. Inventory management includes the following aspects

2。 1 inventory control

inventory is the result of plan and the prerequisite to support plan implementation. Therefore, the primary task of inventory management is to control inventory according to the requirements of product plan. Traditional management practices understand inventory management as just "warehousing, storage and delivery" of materials, that is, a part of inventory affairs mentioned in Section 2.4, which is not comprehensive. If inventory management is combined with different plan management, it cannot explain whether the variety, quantity and storage time of inventory materials are reasonable, that is, it cannot explain whether the inventory materials are stored more or less in quantity, and whether they are stored early or late in time. Inventory should be the result of plan. If inventory is out of plan, it can't be controlled. In addition to ensuring the accuracy of inventory information and meeting customer and market demand plans, an important task of inventory management is to control inventory, accelerate inventory turnover and reduce costs. In other words, the main criteria for evaluating inventory management are:

● customer service water China adheres to the path of peaceful development, which not only ensures the demand of production and sales, but also controls the occupation of funds

● the amount of funds occupied by inventory should be controlled within the enterprise budget

● the turnover times of inventory capital exceed, maintain or approach the industry-leading level

the calculation formula of inventory turnover times is as follows:

inventory capital turnover times (Times) = product sales cost (yuan)/annual average amount of funds occupied by inventory (yuan)

what is assessed here is only the occupation of inventory capital, not all the working capital of the enterprise. In other words, it is only the inventory assets in the working capital, that is, reserve funds, production funds and finished product funds, excluding settlement (such as accounts receivable) and monetary funds. This treatment is consistent with the use of manufacturing cost method in cost calculation. It reflects the inventory management level of the enterprise. When assessing enterprise performance, the number of inventory capital turnover is an important indicator, which indicates the amount of working capital needed for inventory in order to achieve a certain sales amount. Through the implementation of ERP, we should not only increase sales revenue, but also improve the number of inventory capital turnover. Generally speaking, one money can cover several. There is no inevitable linear relationship between inventory occupied funds and sales revenue. The goal of management is to increase sales revenue and reduce inventory occupied funds

inventory control corresponds to the planning level, and there are also macro and micro levels. The macro level mainly controls the inventory level in the accounting year as the basis of financial budget. The main reference value for controlling inventory level is the inventory turnover times of similar enterprises in the same industry under similar customer service levels. According to the spirit of high standard positioning, it should be higher than the average inventory turnover times of the same industry

table 15.3 in the sales and operation planning is an item of macro control inventory. The micro level mainly focuses on inventory affairs, inventory checking, storage and transportation, which is the main function of inventory management in OA software. Japanese j1t philosophy compares inventory to the water volume in the Jianghu and underwater reefs to various problems caused by poor management, such as inaccurate prediction, untimely supply, poor planning, insufficient capacity, low quality, lack of attention to training, poor equipment maintenance, etc. A large inventory is equivalent to a high water level, flooding the underwater reefs, which seems to be conducive to navigation, but the underwater covered problems (reefs) can never explode