What Are the Basics of Inventory Planning?

Inventory plan refers to the plan based on the fixed amount of material reserves, in order to ensure that production processes are not disturbed, and to ensure that normal activities are carried out with the minimum cost of material reserves, and to reasonably determine the amount of material reserves.

Inventory plan

Inventory plan refers to the plan based on the fixed amount of material reserves, in order to ensure that production processes are not disturbed, and to ensure that its normal activities are carried out with the minimum cost of material reserves, and to reasonably determine the amount of material reserves.

Chinese name

Inventory plan

Nature

Material Reserve Management and Planning

Module

Inventory

Object

Number of material reserves

Inventory plan includes OK

(1) Master the tasks of the production plan and production operation plan and the types, specifications, quantities, quality and time of the required materials. ^[2]

(1) Quantitative control method (dynamic inventory method). It refers to a method of taking inventory of the received and received materials at any time, and placing an order when the inventory reaches the order point. Its advantages are: it can accurately grasp the changes in inventory, place orders in time, and it is not easy to appear in bulk; it can reduce insurance reserves; it can use the economic batch method to order materials and improve the economic efficiency of the enterprise;

1. Inventory planning is to ensure uninterrupted production processes ^[3]

The company's material supply plan provides information on the types, quantity, time, and quality of purchased materials for material procurement. However, when formulating a procurement plan, in order to prevent accidents that cause untimely supply of materials and disrupt production processes, the following issues need to be considered

In general, it is difficult to match the amount of materials purchased with the consumption of materials. In order to ensure the normal operation of production activities, a certain amount of inventory is inevitably required;

In the procurement of materials, it takes a certain amount of time from order to delivery. Because some of the delivery period may be particularly long, some suppliers may delay the delivery time, and sometimes accidents occur during transportation and cannot be delivered in time.

The demand in the supply plan is an estimate in itself, and there will be a certain gap between the actual demand for production; and the planned purchase quantity, quality, variety, time, deadline, location, etc., are the results of predictions and forecasts, and There will also be a gap in actual procurement.

In a market economy, the production of an enterprise will be adjusted due to changes in the market. It is urgent to increase the supply of materials. This cannot be achieved by making a temporary purchase plan and relying on inventory.

Starting from economic benefits, ordering a large amount of materials that can be used for a long time at a time can reduce various procurement costs. It can be seen that the smooth progress of the production process of the enterprise needs to be guaranteed by a certain inventory; the formulation of the enterprise procurement plan not only needs to be based on the supply plan, but also based on the inventory plan.