Inventory Control

Inventory Control

ABC Inventory Control System

The ACB Inventory Control System shows u show to handle inventory in an organized way by classifying priorities, this can be done in three different ways; according to the unit cost, the total cost of existence and the needs without taking into account the cost.

You can find different techniques that will improve the working methods, especially on the production area, and one of them is the ABC analysis, also known as an effort answer, answer analysis or the structure of two facts.

“This ABC technique is used specially on the stock management, product analysis, sales review, and customer’s analysis, among many other”, confirmed Salomon Juan Marcos Villarreal, president of Grupo Denim.

The philosophy of this ABC Inventory Control System indicates that some times it is more expensive to control the inventory than the real cost of the product that is being controlled, for this reason, this technique suggests to classify goods by its importance, on the following way:

A: For those products that require better control for its purchase cost, and the cost of having such product in inventory, by its direct input to the utilities of an enterprise, and by the importance of these goods for a job. It generally is focusses to a small number of elements requested by exact quantities and based on demands of the customers.

B: Those goods that are not so needed as the A products, for the cost, utility and control needed over them. The request of these goods is usually calculated with the optimal amount that a company needs to have in stock.

C: Those articles for which an enterprise needs little investment and has little importance to make the final product, for these type of products, you need a simple audit over the existences. You usually have a considerable amount in your warehouse, without have extra leftover or less than what it is actually needed.

“The ABC Inventory Control System pretends to reduce the costs for handling inventory. It can also provide and inventory rotation, to increase sales frequently and decrease the amount of work done that will mean savings in a company”, added Salomon Juan Marcos Villarreal.