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ERP Inventory Management
Posted on: April 3, 2006 at 12:00 AM
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Tutorial on ERP Inventory Management.

ERP Inventory Management 

ERP (Inventory Management module)
Inventory Management module is sub divided into different modules as under
Inventory Requisition.
Inventory Order Assessment
Inventory Placing.
Supplier Performa.
Order Received.
Quality checks
Inventory Bills and Challans
Minimum Inventory Assessment.
Maximum Inventory Assessment.

Minimum Inventory Assessment
In this particular module the objective is to get the minimum Inventory requirement from different Departments. A Performa is prepared in which different departments have to fill up there minimum inventory requirement in coming 15 days i.e. we are planning for ahead what will be the inventory requirement in near future. This assessment will be done by taking into account the Customers Order received, Inventory in hand, Scrap etc. Taking all these into account Departments will be filling Minimum Inventory Requirement.

What is Minimum Inventory Requirement?

Minimum Inventory Requirement is that quantity of inventory below which workers cannot work i.e. it is that quantity of inventory, which is minimum, required accomplishing the task of Student. Hence stock of inventory should not go below this amount.

Maximum Inventory Assessment
In this particular module the objective is to get the maximum Inventory requirement from different Departments.
A Performa is prepared in which different departments have to fill up there maximum inventory requirement in coming 15 days i.e. we are planning for ahead what will be the inventory requirement in near future. We are taking Maximum Inventory Requirement for this reason so that to assure that wastage does not happen and there is no blocking of funds unnecessary. This assessment will be done by taking into account the Customers Order received, Inventory in hand, Scrap, Durable goods, Non Durable goods etc. Taking all these into account Departments will be filling Maximum Inventory Requirement.

What is Maximum Inventory Requirement?
Maximum Inventory Requirement is that quantity of inventory above which order for Inventory should not be placed i.e. it is that quantity of inventory, which is enough to accomplish the task of Student. The stock of inventory above this quantity will result in wastage and blocking of funds.

Inventory Requisition
In this particular module the objective is to take the inventory requirement from different departments of the Student. This is done by filling up of Inventory Requisition form by different departments. In this particular form the Department head will fill up the quantity of Inventory required, Grade / quality of Inventory required etc. Department head should take into account the minimum inventory required, maximum inventory required and current inventory available.

Inventory Order Assessment
This is back end program written in Java Servlets. This program is actually assessing the Inventory requirements of the Company.
It takes the Input from the Inventory Requisition form and processes it i.e. it then compares the Inventory demanded by different departments with the minimum inventory required according to customers order.
After processing the results it makes the final Inventory requirement for different departments and then call for Suppliers list that provides these inventory.

Supplier Performa
In this module the quotation for Inventory requisition is called from different suppliers. Suppliers will be filling up the Proposal Form in which they will be stating that:

  • How much quantity of goods they can provide?
  • In what time?
  • What will be pay mode?
  • Are they providing Credit?
  • What will be the Quantity of goods?
  • What will be the Price per Item?

All this information will be stored and then will be processed by the program which then taking into account all the above filled information will finalize the supplier. Inventory ordered should be cost effective and should be of good quality

Inventory Placing
Now the supplier is selected we have to finally place an order. We have to fill up order placing form in which we will be filling up information like Date of Placing of Order, Quality required, Transportation Mode, Mode of Payment, Advance Payment, Supplier ID, Department ID, price per Item etc. and the order will be placed.

Order Received
Next module is Order Received module in this module we will be recording the Inventory received information. We will be comparing order placed and order received data i.e. weather there is uniformity between these two or not. We will be comparing Date of placing order and Date of receiving order, Quality of Inventory, Quantity of order received and Quantity of order placed, Transport mode etc. If there is uniformity in both then we will be assessing the amount to be paid to the supplier. We will be taking into account the quantity received, price per Item and advance paid.

Quality Assessment
We have received order then it have to pass through quality checks by R&D Department and Department head has to fill up quality assessment form indicating the quality of goods received.

Inventory Bills & Challans
Last thing in Inventory control is making up of payment. When we finally make up payment we have to draw bill & challan indicating the amount paid, mode of payment, Supplier ID, Receipt ID etc.
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Posted on: April 3, 2006

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