Business inventory is used for different owner and product stage; the stages are discussed below:
Buffer Stock: This is applied in individual workstations used against the possibility that the upstream workstations are sometimes appearing little delayed in providing different items for processing. There are some processes that carry very large buffer stock.
Safety Stock: This function is held against process or machine failure that can be repaired before the stock completely gets over.
Overproduction: This is held as the forecast and the actual sales did not match.
| Lot Delay Stock: This is held as a part of the inventory process that is designed for working on a batch basis while only processing the items individually. Demand Fluctuation Stock: This is held where the production capacity becomes unable to flex with demand that exceeds the production capacity. This is also supported by the flexibility and capacity of a production line or reduced by moving to the item level load balancing.
Changeover Stock: This mechanism is held after a sub process that has a long set up or also has change over time. Changeover Stock is used while that changeover is in process the stock can also be eliminated by tools like SMED.
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| Most of the manufacturing organizations usually divide their good for sale inventory into three parts Raw Materials, finished goods and work in progress.
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