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03mfg62s-INV

By Steve Mitchell,2014-04-29 02:57
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03mfg62s-INV

    2010-10-24 23:53:00

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    Unit 3Inventory Management

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    Unit 3Inventory Management

    Unit Introduction ........................................................................................................ 1 Objectives ............................................................................................................. 1 Terminology .......................................................................................................... 2

    Inventory Management .............................................................................................. 3 MRP II and Inventory ............................................................................................ 5 Inventory Integration............................................................................................. 6 Inventory Master File Setup ................................................................................. 9

    Item Type ...................................................................................................... 10

    Item Class ..................................................................................................... 13

    Item Master ................................................................................................... 14

    Unit of Measure ............................................................................................. 16

    Alternate Item ................................................................................................ 21 Material Allocation .............................................................................................. 23 Nettable and Allocatable Inventory .................................................................... 24 Six Levels of Planning and Inventory Control..................................................... 25

    Item ............................................................................................................... 26

    Facility ........................................................................................................... 27

    Warehouse ................................................................................................... 27

    Location ........................................................................................................ 28

    Lot ................................................................................................................. 28

    Lot Status ...................................................................................................... 30

    Container ...................................................................................................... 33 Transaction Effects ............................................................................................. 36

    Material Flow ................................................................................................. 40

    Reason Codes .............................................................................................. 41 Material Status Inquiry........................................................................................ 42 Inventory Status ................................................................................................. 43

    On-Hand ....................................................................................................... 43

    Allocated ....................................................................................................... 43

     Table of Contents 3-i

List of Tables

    Table 3 - 1. Reserved Item Type Codes ................................................................. 11 Table 3 - 2. BPCS Alternate Item Reserved Status Codes ..................................... 21 Table 3 - 3. Reserved Lot Status Codes ................................................................. 30 Table 3 - 4. Reserved Transaction Effects ............................................................. 38 Table 3 - 5. Reason Codes ..................................................................................... 41

     Table of Contents 3-iii

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Unit Introduction

    This unit covers BPCS Inventory Management (INV). Parts and finished goods are all

    controlled by Inventory Management. They are stored in the Item Master file as Inventory

    Items. We will discuss this process in this unit.

    Objectives

    At the end of this unit you will be able to:

     Create Inventory Items in BPCS.

     Define the six levels of inventory.

     Determine on-hand and available inventory.

     Calculate alternate item substitution.

     Inventory 3-1

Inventory Management

    The Inventory Management (INV) product provides concise and accurate information for the control and planning of finished goods, work in-process, and raw material inventory. BPCS provides summary and detail analysis for both accounting and production control purposes. It also provides a sub-system for complete cycle counting and physical inventory reconciliation. There are several benefits to implementing Inventory Management.

     Increases visibility:

    ; Material availability

    ; Allocation information

    ; Inventory-related data

     Increases accuracy:

    ; Inventory

    ; Replenishment requirements

     Increases control:

    ; Monitors material usage through transaction history

    ; Tracks inventory by item, facility, warehouse, location, lot, and containe

Inventory consists of finished goods, components, and raw materials.

     Finished goodsproducts sold to customers

     Subassembliesgroups of components combined into a major subdivision of the final

    product

     Componentsparts used in the assembly and manufacturing process

     Raw materialsmaterials processed into components or finished goods

    Inventory is any stock at any stage in the supply chain. Inventory has an intrinsic value and incorporates added value. The investment in inventory typically represents one of the largest single areas of capital in a business, often more than 25 percent of total assets. Inventory should be an asset. However, if inventory is not properly managed, it can become a liability. Inventory Management provides the opportunity to save money by controlling inventory with informed planning and production.

     Inventory 3-3

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