Factors used in determining inventory quantities. To consider the amount of inventory in the correct level, then it is quite hard, it is necessary for the operator to know what can help in determining the quantity of inventory on the appropriate level of assurance. 1. the main aim of inventory. Usually, the inventory is intended to be a business operations running smoothly. No hiccups or interruptions, but sometimes a business may have a different aim, as if predicted that prices are likely to rise in the future, it may be filed by speculation in the current inventory to sell at higher prices in the future. The quantity of inventory, so there is a lot or sometimes receive cash discount offer from a Supplier to a large number of items in the purchase order, this case must be compared to results from the cash discount received and results from the increase in inventory management. 2. in the past, sales of business entrepreneurs can bring sales that occurred in the past, of the sales forecasting come may occur in the future. This is to quantify the business's inventory directly to the sales forecast was enough. If so, there might be sales inventory quantities in a relatively level. To support the forecasting sales, but if it ever happened again, there are no sales in the past, you can define the level of inventories from their sales estimates. 3. trading according to the season (Seasonal Selling) if the business is seasonal trading, such as umbrellas, which business enters the rainy season sales probably more than normal, so the level of stock in during the rainy season, it will be increasingly based on the volume of sales increases. After that, sales will be reduced to a normal level, the level of the inventory quantity is reduced by the. 4. item properties including durability, life cycle image size, etc. If it's a business that sells vegetables or fruits that are low life cycle. The business will have more stock, it probably is not a good thing, of course, because if it was not for sale. Vegetables, fruit, or it may be rotten and corrupt at the time quite quickly. In addition, certain types of goods, even if they are stored for a long time may degenerate expired or corrupted. However, there may be business items allow safe (Safety Stock) to accommodate the stumbling sale no. 5. the classification of the goods. Sometimes a business may have several different types of products for sale. Some may be sold. Some may have sold quite a few it may be categorized as a category item sales quantities, that is very important, which can be sold in bulk and less important items because fewer sales, which determines the quantity of the inventory based on the importance of each type of item, such as an item that has sold a lot, you should have a lot of inventory quantity. Less important items sold at least, it should have a minimum inventory quantity, etc. 6. on the item. If an item is obsolete industry category is not as popular. The remaining quantity of goods of this type should be less than for other types of products in the production line of business. In addition, the popularity of the customer to change at any time. Where a business cannot control. Therefore, the business case for a popular item. Next to the market and tend to sell more. Business, it's important to consider the safety margin items in determining the quantity of their inventory. In order to prevent the shortage of goods, which will bring the loss of customers in the end walls. 7. the uncertainty in the shipping of Suppliers in business sometimes may have to buy raw materials from Suppliers, which will normally have a duration of the order (Lead Time) that fairly, of course, but when it's time to ship raw materials consumption, if this is true, there may be delays. This may be caused by unexpected events that cannot be controlled, such as transport accidents collide. Therefore, in determining the quantity of inventory. A practitioner should be held in a secure archive. To prevent business interruption and loss of opportunity to sell and may be caused by the uncertainty of this shipment. 8. to bring information technology into use in inventory management, particularly in the field of communication and trade items with this because if an error communications business, it will lose the opportunity to sell products to customers stemming from erroneous item sold does not match the quantity the customer needs or may not have an item for sale. In addition, if the response to an inquiry from the customer is delayed, the forecast quantity of inventory to support sales more difficult. Therefore, the more business can develop information technology to support communication activities and trade items with customers much. Forecasting inventory quantities will be easier. 9. the Government's policy changes, including laws and regulations, which resulted in both an opportunity or threat to business operations and affect directly the inventory quantity of each type of business, especially with businesses that depend on the procurement policy of the Government. 10. the cost of inventories (Inventory Cost) in determining the amount of the inventory of the business must take into consideration the various costs incurred by the main aim is to have the amount of the appropriate inventory and management costs low.
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