5 Methods to manage the inventory in store

In this blog we had described about how to manage your inventory in the store.

Here we had listed five types of inventory analysis.

Checkout which one is suitable for your store.

ABC Analysis:

This analysis categorizes items based on their annual consumption value and its inventory.

Class

Description

Class A

Annual Consumption value is high (70%) with less total inventories of 10%

Class B

 Annual Consumption value is same as of total inventories.

Class C

  Annual consumption is less (10%), but high in total inventories of 70%.

FSN Analysis:
This analysis classifies inventory based on quantity, rate of consumption and frequency of used or issued.

Class

Description

Fast Moving (F)

Items that are frequently used.

Slow Moving (S)

 Items that are used less for certain period.

Non-Moving (N)

Items that are not used for more than certain duration

VED Analysis:

This is an analysis whose classification is dependent on the user’s experience and perception.

Class

Description

Vital

Consistently needs to be kept in stock.

Essential

Maintaining a minimum stock of this inventory is enough.

Desirable

operations can run with or without this material
(optional).

HML Analysis:

HML Analysis classifies inventory based on how much a product costs/its unit price.

Class

Description

High Cost (H)

Item with a high unit value.

Medium Cost (M)

Item with a medium unit value.

Low Cost (L).

Item with a low unit value.

SDE Analysis:

This analysis classifies inventory based on lead time to regain the consumed material.

Class

Description

Scarce (S)

Items which are imported and require longer lead time.

Difficult (D)

Items which takes between more than 15 days but less than 6 months to regain.

Easily available (E)

Items which are easily available can be regain in a day.

 

We will provide best guideline to implement and improve your concern.

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