Inventory Management

Topics: Inventory, Warehouse, Supply chain management terms Pages: 1 (471 words) Published: November 5, 2014

INVENTORY MANAGEMENT
Inventory management is crucial for the success of a company. The main objective of Prime Alumumium is to invest the least amount in inventory while maintaining specific operating requirements. Low cost and timely strategies cannot be achieved without a flawless inventory management. FUNCTIONS OF INVENTORY MANAGEMENT

There are various functions which an effective inventory management fulfills. It separates different processes in the production from each other. Inventory management also provides a buffer against the fluctuations in demand and selection of goods in stock for the customers to choose from. It also helps in taking advantage of quantity discounts and provides a hedge against inflation. Types of inventories used by Prime Aluminium:

Prime Aluminium has to lodge many functions of inventory, in order to do so they maintain 3 types of inventories: Raw material inventory and purchased components: The materials that are purchased but yet entered the manufacturing process. The main raw material (aluminum extrusions in alloys AA_6063 from DUBAI) is delivered from Karachi to Lahore by road through containers. This raw material arrives in trucks in the factory building where they check whether the quantity and quality of the delivered material is the same as ordered. Thus, the staff makes sure that it is cost effective and they will have to pay as per the quantity delivered to them. In-process inventory: The products and components that are no longer raw materials but have yet to become finished products. The product in elongated pieces before cutting are stored temporarily and then shifted to the cutting machines (Auto cutter and puller system). The cutting is done in such a way that the profile made is kept on over the other. Finished Goods inventory:

Prime Aluminum uses the latest technology staking and packing systems, each profile is packed separately ensuring maximum quality. After going through an extensive quality management...
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