Page 138 - DMGT525_MATERIALS_MANAGEMENT

Unit 9: Inventory Control

Point-of-Sale: In an establishment that sells goods or services, the location at which payment Notes
for goods is made is known as point of sale.
Reordering: Rearranging the order of items in a compound document. Items in a compound
document are typically numbered sequentially in ascending order is referred to as reordering.
RFID: Radio frequency identification systems that use transponders to transmit significant
amounts of data to a receiver; often used as part of a real-time locator system.
SDE Analysis: The SDE analysis is based upon the availability of items and is very useful in the
context of scarcity of supply.

VED Analysis: It is the Analysis for monitoring and control of stores and spares inventory by
classifying them into 3 categories viz., Vital, Essential and Desirable.

9.8 Review Questions

1. What do you understand by inventory control?

2. What are the Elements of an Effective Inventory Control?
3. Discuss the advantages of inventory control.
4. Explain the Procedure for Setting up an Effective Inventory Control.

5. Briefly discuss V.E.D. Analysis.
6. Explain the concept of S.D.E. Classification.
7. Explain F.S.N. Analysis.
8. Why is X.Y.Z. Analysis used?
9. Explain Logistics Management & its link with Inventory Control.

10. Write a note on inventory classification techniques.

Answers: Self Assessment

1. Inventory 2. Just-in-time
3. Reordering 4. Warehouses
5. Tracking 6. JIT

7. Inventory Control 8. Fool-proof
9. Replenish 10. Re-order
11. Spare Parts 12. Essentials
13. SDE Analysis 14. Lead time

15. Movement 16. Procurement
17. Outward Transport

LOVELY PROFESSIONAL UNIVERSITY 133