This overview provides some of the business considerations related to inventory management. We use the following features to help us fully utilize our Inventory Management system:
* Stocking considerations
* Item identification
* Location and lot considerations
* Physical and logical warehouses
* Item count and cost computation
We consider the types of inventory that we have, what we use them for, and where and how we store them. Then consider our company’s needs based on our business activities and our suppliers’ and customers’ requirements.
Typically, our company maintains one or both of the following types of inventory:
* Stock items
* Non-stock items
Stock items are stored products or parts that are ready for sale. Non-stock items are typical items that are used by our company:
* Consignment items
* Customer supplies
* Standing-order item
We consider how we want to identify inventory items in the system.
Item Numbering and Description
MYOB World provides multiple methods of identifying items within the software. We use actual item numbers, numbers that we designated them, and a combination of both. By using actual item numbers, we can identify pertinent information about an item such as:
* Material used
* Year produced
* Specific contract
* Special processes of Service
* Country of origin
* Tests or quality analyses performed
We also identify each item with up to three inventory item numbers:
* Primary number
* Secondary number
* System-assigned number
The Inventory Management system’s cross-reference capabilities allow us to have unlimited item identifiers within the system.
Besides identifying items numerically, we also describe each item with additional information, such as:
* Standard description
* Technical description with specifications
* Warning messages
* Logistics Partner information and availability
Location and Lot Considerations
After we determine how to store our inventory, we set up physical locations to fully utilize the available storage space.
Lot processing allows us to manage and maintain information about groups of items. We also determine how to identify item locations and lots in the system to allow us to locate items quickly and perform daily operations efficiently.
The Inventory Management system allows us to track our items through a vast number of item locations that we create in the system.
Each branch/plant defines its own set of rules, which allow us to separate divisions of universal items for which we can implement unique rules, costs, prices, and so forth. Within each branch/plant, we have created locations online that closely resemble the structure of our physical locations (for example, aisles, bins, and shelves) within the branch/plant.
After we establish a branch/plant, we further define it by identifying locations, which include zones, aisles, bins, lots, and so on.
We identify and segregate inventory by lots within locations for special lot control or layered costing. These features allow us to provide unique descriptions, cost information.
*We Assign a lot number to an item or have the system assign it upon receipt of the item
* Place a lot on hold when there’s a problem within the lot
* Assign a status to a lot, such as one in quarantine or inspection
* Review transactions by lot.
Physical and Logical Warehouses
If we typically receive large shipments of items that take up a lot of space, it will no longer be necessary to transfer or consolidate similar items to open up one large physical space. Instead, we portion out the item into physical and logical warehouses, and easily track each item using the Inventory Management system.
Using the Inventory Management system, we maximize the dimensions and layout of our physical warehouse to:
* Use overflows areas more efficiently
* Assign locations
* Track work in process
* Identify and track items in transit
* identify similar items
A logical warehouse is a location that does not actually exist. We designate a logical warehouse to resemble the actual physical warehouse, and then define our locations in whatever format is required to fit our needs. We define:
* Pseudo locations, which represent a physical location, for products we sell but do not stock.
* Locations for placement of damaged goods
* Consigned items
* Customer inventory
* Expensed inventory
Item Count and Cost Computation
We use the Inventory Management system to identify discrepancies between our online amounts and cycle and tag counts. We then conduct as many cycle and/or tag counts as our need at any time. We also:
* Print count sheets
* Enter and verify counts
* Review variances online or by report
* Update correct counts
We use the Inventory Management system to print bar codes on certain reports such as the Inventory Count Sheet report. .
Printing a bar code for each item allows us to enter item information and track the items more efficiently through processes such as scanning.
In Inventory Management, we choose whether to print bar codes through processing options for certain reports. The processing options also allow us to specify which type of bar code to print. There are two types of bar codes, both of which represent the alphanumeric information in the Inventory Management system:
* Code 39
* Code 128
The difference between the two codes is the way that the bar code pattern appears. Which code to choose and which code applies to the type of bar codes that our company uses.
We quickly access the following quantity information for inventory:
* Committed to orders
* On back order
* On purchase orders
The Inventory Management system allows us to use its interactive and batch capabilities to compute reorder points and quantities.