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Records Management of Inventory |
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Thursday, 22 March 2007 |
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Records management of inventory is critical to a well-run company who purchases and sells inventory products. It also is critical to a company that buys components and then makes a finished product that includes these parts. The problem in this situation is inventory control. The level of inventory must be kept at a usable level, but not over or under stocked. Many companies try to operate on a “just in time” inventory control. This keeps assets from being tied up in inventory, but also keeps production moving and not stopping for lack of parts.
Accurate inventory control in this day of the computers is fairly simple to do as long as the database remains current. This system requires entry of item removal and the same for restocking of an item. When this system is properly maintained, the inventory control is almost automatic. The computer program will alert that it is time for another order or the inventory is getting old. The system can also keep track of the money tied up in available inventory. The purchased items are entered and the purchase price is also recorded. As the items are used in the manufacturing, the cost of inventory is automatically adjusted. This system can be tied into a purchasing system, which allows the entire operation to run efficiently. The computer has allowed for better record management of inventory control and also cut down the need for extra personnel to keep the records. This results in payroll savings and better inventory management. |