Showing posts with label Inventory Inventory Management Control Method Problems in inventory. Show all posts
Showing posts with label Inventory Inventory Management Control Method Problems in inventory. Show all posts

Saturday, 18 June 2022

Inventory

It is a stock of goods. These goods are maintained on hand near a business location.
 

It is refer to the items/goods/material held by a construction firm/contractor for to be used at site.
 
        Example of inventory items on a construction site include items on a construction site include cement, steel, bolts, nails, dozer, bricks, paint, etc.

                    
        
cement inventory
                                  

steel inventory

                                   

Inventory Management

  • Construction inventory management is a means by which construction companies and suppliers can keep track of materials, equipment and plant. 
                    
  • This is particularly important when a construction company has multiple projects to manage, as efficient scheduling can become very complicated.
  • Two major methods for inventory management are just in time (JIT) and material requirement planning (MRP).

Objectives 

  • To ensure that the supply of raw material and finished goods will remain continuous.
  • To minimize carrying cost of inventory. 
  • To keep investment in inventory at optimum level. 
  • To reduce the losses of theft, obsolescence and wastage etc.
  • To make arrangement for use of slow moving items.
  • To minimize inventory ordering cost.

Inventory Control Methods 

  • Inventory control is a very complex process and multiple information sources are require to define the control mechanism.
  • In order to control the wastages through misplacing, improper stacking, different types of inventory techniques are followed.
  • Most commonly used inventory control method are :
  1. ABC classification ( Always Better Control )
  2. VED Analysis ( Vital, Essential, Desirable )
  3. SDE Analysis ( Scarce, Difficult, Easy to obtain )
  4. JIT (Just In Time )

Problems  in Inventory control at construction site -

  • Material are scattered in different areas of the project.
  • The location of the stores frequently get changed which indeed to lose materials.
  • If two contractors are working on the same premises, the chances of the losing material are very high.

Inventory

It is a stock of goods. These goods are maintained on hand near a business location.   It is refer to the items/goods/material held by a con...