Inventory Management
AN INVENTORY MANAGEMENT SYSTEM FOR
ITALFIL PORCELAIN TRADING COMPANY
Arceli M. Basi
Holy Angel University
An Inventory Management System for Italfil Porcelain Trading Company
Every organization whether manufacturing or trading in nature constantly strives to determine the appropriate logistic system and to maintain optimum inventory to be able to meet its requirements and avoid over or under stocking of inventory and even pilferages that can impact the financial figures.
The ideal inventory and proper merchandise turnover will vary from one market to another. Average industry figures serve as a guide for comparison. Too large an inventory may not be justified because the turnover does not warrant investment. On the other hand, because products are not available to meet demand, too small an inventory may minimize sales and profits as customers go somewhere else to buy what they want where it is immediately available. Minimum inventories based on reordering time need to become important aspects of buying activity. Carrying costs, material purchases, and storage costs are all expensive. However, stock-outs are expensive also. All of those costs can be minimized by efficient inventory policies.
The aim of the study is to achieve an optimized inventory management system for Italfil Porcelain Trading Company (IPTC). This study is limited to the establishment of an inventory management system for IPTC with the help of model. Also, the study is limited to the establishment of the system and will only outline the day-to-day operations of inventory management.
IPTC maintains inventory of its regular products on its warehouse and the daily inventory operations start when the sales executive or sales coordinator receives a Purchase Order (P.O.) from customers, this P.O. contains all information about
ITALFIL PORCELAIN TRADING COMPANY
Arceli M. Basi
Holy Angel University
An Inventory Management System for Italfil Porcelain Trading Company
Every organization whether manufacturing or trading in nature constantly strives to determine the appropriate logistic system and to maintain optimum inventory to be able to meet its requirements and avoid over or under stocking of inventory and even pilferages that can impact the financial figures.
The ideal inventory and proper merchandise turnover will vary from one market to another. Average industry figures serve as a guide for comparison. Too large an inventory may not be justified because the turnover does not warrant investment. On the other hand, because products are not available to meet demand, too small an inventory may minimize sales and profits as customers go somewhere else to buy what they want where it is immediately available. Minimum inventories based on reordering time need to become important aspects of buying activity. Carrying costs, material purchases, and storage costs are all expensive. However, stock-outs are expensive also. All of those costs can be minimized by efficient inventory policies.
The aim of the study is to achieve an optimized inventory management system for Italfil Porcelain Trading Company (IPTC). This study is limited to the establishment of an inventory management system for IPTC with the help of model. Also, the study is limited to the establishment of the system and will only outline the day-to-day operations of inventory management.
IPTC maintains inventory of its regular products on its warehouse and the daily inventory operations start when the sales executive or sales coordinator receives a Purchase Order (P.O.) from customers, this P.O. contains all information about
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