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Impact Of Efficient Inventory Control On Materials Management In An Organization
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1.9 DEFINITION OF TERM
(1) Lead time: This is the moment, the stock controller placed order to the time the order is supplied.
(2)
Stock taking: This represent the complete process of verifying the
quantity balances of the usually range of terms held is stock. It is
usually carried out annually so as to discuss the value and quantity of
stock for balance sheet purposes.
(3) Stock checking: Represents any
physical check on the quantity of items held in stock. This is actually
applied either required or intermittently.
(4) Maximum stock level:
This is the amount of stock expressed in units or issue above which the
stock should not be allowed to rise. The purpose of this level is to
curb excess investment or over stocking.
(5) Minimum stock level: This is the level blow to which the stock should not be eliminating under stocking.
(6)
RE- ORDER LEVEL: This represents the amount of stock at which new order
is to be placed or ordering actions is indicated in time for the
materials to be delivered before stock falls below the minimum level.
(7)
Surplus: A useable materials, equipments or parts including capital
equipment which are in excess of normal manufacturing operating or
repair equipments.
(8) FIFO: First in, first out
(9) LIFO: Last in, last out.
(10) Obsolete: This is where an item is completely usuable by the organization.
(11) Stock: these are inventories or stores used within the production system.
(12)
Productivity: This is the rate or amount of goods produced compared
with low much input (time, money ) used or needed to produce then.
(13) Obsolescent: When stock is going out of use but is not yet completely unusable.
(14)
Redundant: When item in stock is more than what is reasonably necessary
to provide an adequate service to the production or operational
activity, the excess over the normal holding.
(15) Discrepancies:
This is when the amount of stock found by psychical check fails to
correspond with the balance on the stock records.
(16) Minor discrepancies: This is when difference between the physical check and stock record are less of small.
(17)
Major discrepancies: This is a situation where the difference between
calculation and physical stock id small, but items involved in every
important to the operations of the organization.
(18) Pre- Production
inventory: Companies parts and materials purchased from out side the
organization for manufacturing a product.
(19) Stock control and
inventory control: Are used synonymously, stock control originated from
Britmins while inventory control is of American origins but means the
same thing.
(20) Buffer or safely stock: Thus is not stock level but
the stove manager must take cogmzanace of this so as to completely avoid
a situation of s tock out.
(21)Stock out cost or shortage cost: This
usually occur when an organization lacks inventories to satisfy the
requirement and demand.
(22) Administration/ handing cost These cost are incurred when an organization places order for item to be stored.
(23) Cost of carrying stock: These costs are incurred when inventory is held in stock/stores.
(24) Call- off order: This is another system used to solve small value purchase problems.
(25) Petty cash order: The petty cash order system is a little variation of the cash purchase.
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ABSRACT - [ Total Page(s): 1 ]Inventory control requires high cost and investment commitments. In manufacturing company where inventories are handled the introduction of a well planned and effective system or means of controlling these inventories is necessary for profitability and accountability to both the management and shared holders of the company whose inertest, objectives was established must be protected. However, the researcher work will be treated in five chapters. Chapter one is the introduction of the work where ... Continue reading---
