1. INVENTORY CONTROL
SUBMITTED BY:
CHAWDA UTSAV MOHAN
ROLL NO-08
DEPT. OF MECHANICAL ENGINEERING, SJCET.
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2. Contents
Ordering Procedures
Two Bin Systems
Ordering Cycle
Economical Order Quantity (EOQ)
Economical Lot Size
ABC Analysis
Recorder Procedures
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3. ORDERING PROCEDURE
A work order is an order received by an organization from a
customer or client, or an order created internally within the
organization. A work order may be for products or services.
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4. LAYOUT OF ORDERING PROCEDURE
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5. TWO BIN SYSTEM
The two-bin inventory control
method is mainly used for small or low
value items.
Two bin system is used for the
material control. It is that technique of
material control in which we have two
bins, one is used for in use minimum
stock and second bin is used for
reserve stock or to keep the remaining
quantity of material.
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6. ECONOMIC ORDER QUANTITY.
Economic Order Quantity (EOQ) is
the order quantity that minimizes the
total holding costs and ordering costs.
It is one of the oldest classical
production scheduling model.
In most cases, the order quantity is
determined by the balance between
the ordering costs for the necessary
items and the inventory carrying cost.
This order quantity is generally called
lot or lot size.
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7. ECONOMIC LOT SIZE
The order quantity is determined by
the balance between the ordering costs
for the necessary items and the
inventory carrying cost. This order
quantity is generally called lot or lot
size.
Economic lot size refers to the best
lot quantity to make the total cost
minimum by considering the balance
between the ordering cost and
inventory carrying cost.
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8. ABC ANALYSIS
 The ABC analysis (or Selective
Inventory Control) is
an inventory categorization technique.
 ABC analysis divides an inventory
into three categories:
 "A items" with very tight control and
accurate records
"B items" with less tightly controlled
and good records
"C items" with the simplest controls
possible and minimal records
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9. CONCEPT OF ABC ANALYSIS
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10. BENEFITS OF ABC ANALYSIS
It gives a clear idea to the inventory
planning manager to order new
materials whenever required.
It tries to focus & direct the efforts
based on the merits of the items.
It provides steps to utilize the
material in sequence & to give
importance on a particular part or
equipment.
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11. DRAWBACKS OF ABC ANALYSIS
It does not show the rate at which the
stock will be utilized so that it can be
refilled with fresh ones.
It does not give exact quantity of
goods required for inventory.
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12. RECORDER
PROCEDURE
The procedure for recording is
based on the stage at which
the recorder is to be given. This
stage is known as the recorder
point.
In determining the recorder
point the following three
factors are needed to be at
hand:
 Usage rate : quantity of
inventory used or sold each
day.
 Lead Time : Time (in days)
takes for an order to arrive
when an order is placed. 12

13.  Thank You 
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