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      Inventory Planning Package - Excess & Obsolete Inventory Policy & Planning Guide

      The Ultimate Guide to Inventory Planning Methods - Pro

      The objective of this guide is to describe the present use, application and characteristic of selecting various inventory planning methods, and to explain how the methods are applied by the supply chain professionals.

      This guide would be considering five Inventory Planning Methods which includes:

      • Kanban

      • Re-order points

      • Fixed Order Interval

      • Run-out time

      • Material Requirement Planning (MRP)

      Most of the Inventory Planning methods can be used in manufacturing as well as in the distribution industry.

      These Inventory Planning methods should be seen as a tactical planning level. It concerns balancing supply and demand and it is in this respect dealing with the initiation, control, and monitoring of manufacturing and purchasing orders in order to keep the material flow and the value-adding activity in manufacturing going on without interruptions.

      The guide comprises of 23 pages and over 4000 words with picture illustrations and easy to understand bullet point concepts.

      Contents

      • Introduction
      • Poor Inventory Planning Symptoms
      • KANBAN
      • Benefits of the Kanban system
      • Characteristics of the Kanban System
      • Rules of the Kanban system
      • Profile Kanban system
      • RE-ORDER POINTS
      • Characteristics of Re-order Point Systems
      • FIXED ORDER INTERVAL
      • RUN-OUT TIME
      • MATERIAL REQUIREMENT PLANNING (MRP)
      • Evolution of Material Planning Systems
      • The Benefits of MRP
      • What is Required to Run MRP
      • Key Terms for MRP
      • Where-Used and Pegging Data
      • Dependent vs. Independent Demand
      • Actions of the MRP Planner
      • Characteristics of MRP
      • ’Summing-up’ Material Planning Method Characteristics
      • Key Challenges in Using MRP
      • Kanban vs. MRP – Key Differences
      • Conclusion

      References

      Considering that the planning environment and the way an inventory planning method is applied has a major influence on how efficiently and effectively it can be used, it is of interest to know more about which inventory planning methods companies use, in what planning environment they use them, how they use them and how successfully they can be used.


      GUIDE TO EXCESS AND OBSOLETE INVENTORY POLICY - Revised & Updated

      Excess and Obsolete (E&O) inventory is most frequently discussed issue that affects distributors, manufacturers, and retailers. The inventory signifies massive investment for any business, and if it is not traded for some reason, it consumes warehouse space and increases liability.

      This guide explains guidelines for adjustments, disposition, inventory valuation, identify the E&O root cause, responsibilities and reserves.

      This Excess and Obsolete Inventory Policy Guide help you proactively identifying, accounting for and resolving the disposition of excess and obsolete inventory. Also to assign the proper accountability for continuous improvement activities focused on reducing the occurrence of excess and obsolete inventory by identifying and addressing the related root causes

      This policy when implemented offer:

      #) Inventory reserves evaluation to identify and review all inventory to proper estimations on a quarterly basis.

      #) Proper planning to ensure accuracy on all levels.

      This EXCESS AND OBSOLETE INVENTORY POLICY guide are comprised of 12 pages with the 2696 wordcounts. Included as Microsoft Word and PDF format, so you can customize it for your own business.

      Table of Content

      EXCESS AND OBSOLETE INVENTORY POLICY – ALLOWANCE FOR EXCESS, OBSOLESCENCE, AND SHRINKAGE INVENTORY

      • POLICY & SCOPE
      • WHEN INVENTORY IS CONSIDERED EXCESS AND OBSOLETE
      • UNDERSTANDING CONTRIBUTORS FOR EXCESS & OBSOLETE INVENTORY
      • INVENTORY ROOT CAUSE & DISPOSITION CODING
      • GUIDELINES – SHRINKAGE
      • GUIDELINES – OBSOLESCENCE
      • GUIDELINES – EXCESS INVENTORY
      • QUARTERLY MODIFICATIONS TO INVENTORY RESERVE
      • ANNUAL MAINTENANCE OF RESERVE
      • DEBIT BALANCES IN RESERVE ACCOUNTS
      • RESPONSIBILITIES
      • DEFINITIONS

      I hope you and your financial controller find it useful! 

      You will also find my blog "Safety Stock Formulas and Safety Stock Calculation- The Ultimate Guide" - https://www.scmdojo.com/safety-stock-formula/ useful. 

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