Question

What do we mean by the terms inventory and warehousing? Describe the normal business process in the inventory cycle? What documents would a firm use to record activities in that cycle?

Answer 1

Solution:-

What Is Warehouse Inventory?

In the strictest definition, warehouse inventory "includes the products, raw materials, work-in-process goods and finished goods that make up the inventory that is or will be for sale by a company," says ACCtivate. The company, which provides inventory management software and expertise. Breaking down warehouse inventory according to those terms sheds more light on what, exactly, makes up warehouse inventory.

Warehouse management, as its name implies, involves the "various processes related to maintaining and controlling a business’s warehouse," says SelectHub, which also produces business software, including warehouse-management software.

What Is Inventory Management:-

Inventory management is the management of inventory and stock, says Trade Gecko, a commerce information site.

Trade Gecko says that "inventory management is all about having the right inventory at the right quantity, in the right place, at the right time, and at the right cost."

normal business process in the inventory cycle and What documents would a firm use to record activities in that cycle:-

• Only count one category each month. This allows you to hit everything more than once per year. It also keeps you focused. And, frankly, it's the amount of inventory you can handle in this type of count. Cycle counts should never close the store. In other words, you should be able to complete the count during normal business hours or maybe within a couple of hours after close.
• Pick which category to count based on selling season. For example, there is no need to count long sleeve shirts in July. Count your shorts in July. The idea of cycle counting is to be able to respond before the season ends. In other words, fix the errors on products that are selling now. While it does make sense to cycle count for planning purposes for the Fall, the real benefit will come when you can respond immediately while the products selling opportunity is at its peak.

• Assign a section of the store to an employee. Make one person accountable for an area. They keep it maintained and cleaned and merchandised. That person completes the cycle count. It was included in the employee's performance revieweach season. Note: We always had a manager help with all counting as part of a check and balance system. You don't want the person mismanaging or worse stealing your inventory to be in charge of counting it.
• Post results for employees. While you don't need to share all exact dollars with your employees (however, I always did) it helps for them to know how they are doing. If there is a loss, they should know. Often, it is the employee who can help you stop the leak and keep your inventory from shrinking. I can name several times it was an employee who solved the mystery, not me when it came to inventory issues.

• Don't publish your count plan schedule. Keep the employees guessing. While I suggested picking the category based on seasonality, you don't want to be too predictable. Again.the internal thief will find the practice of knowing what you're counting very beneficial for his or her planning as well.