NCEA L2 Acc - Strategies to Improve Inventory Management

A unique alphanumeric code assigned to each product in your inventory. This code allows for efficient tracking of product details, including quantity, cost, and sales data.

• Stock Keeping Unit (SKU) System
• Inventory Control Method
• Checking Inventory Received
• Just-In-Time (JIT)

This system maintains a constantly updated record of inventory levels. Transactions like purchases and sales are automatically reflected in the system, providing real-time data on stock availability.

• Demand Forecasting
• Perpetual Inventory System
• Stock Keeping Unit (SKU) System
• Inventory Control Method

This method determines the order in which inventory is processed. Common methods include FIFO (First-In, First-Out), where the oldest stock is sold first, and LIFO (Last-In, First-Out), where the newest stock is sold first. The chosen method depends on the type of product and industry.

• Authorization of Inventory Purchases
• Perpetual Inventory System
• Safety Stock Levels
• Inventory Control Method

This technique utilizes historical sales data, market trends, and other factors to predict future demand for products. This information helps businesses optimize inventory levels and avoid stockouts or excess inventory.

• Checking Inventory Received
• Demand Forecasting
• Stock Keeping Unit (SKU) System
• Authorization of Inventory Purchases

Additional inventory held beyond the expected demand to mitigate unforeseen circumstances such as unexpected sales surges or supply chain disruptions.

• Inventory Control Method
• Stock Keeping Unit (SKU) System
• Safety Stock Levels
• Checking Inventory Received

This strategy aims to minimize inventory holding costs by receiving raw materials or goods only as they are needed for production or sales. JIT requires close collaboration with suppliers, efficient production processes, and accurate demand forecasting to ensure a smooth flow of materials without stockouts.

• Demand Forecasting
• Safety Stock Levels
• Perpetual Inventory System
• Just-In-Time (JIT)

This process ensures that all inventory purchases are approved by designated personnel, typically based on pre-defined guidelines and budgets. This helps control spending and prevent unnecessary purchases.

• Just-In-Time (JIT)
• Inventory Control Method
• Authorization of Inventory Purchases
• Authorization of Payments

This involves verifying the quantity and condition of received inventory against the purchase order. Discrepancies are identified and addressed promptly to maintain accurate inventory records.

• Safety Stock Levels
• Stock Take
• Checking Inventory Received
• Inventory Control Method

Similar to purchase authorization, this process ensures that payments for received inventory are approved according to established procedures.

• Safety Stock Levels
• Demand Forecasting
• Authorization of Payments
• Authorization of Inventory Purchases

Regular physical inventory counts are conducted to ensure the accuracy of the perpetual inventory system. This process helps identify and rectify any discrepancies between the physical inventory and the system records

• Perpetual Inventory System
• Stock Take
• Checking Inventory Received
• Just-In-Time (JIT)