Stock Throughput Insurance

1. INTRODUCTION

Meaning AND MEANING

The inventory is a list of goods and materials, or products or materials themselves, held in stock by a company. Stocks are held for managing customer and hide the fact that the lead time manufacturing / is longer than the time of delivery, and also to reduce the effect of defects in the manufacturing process gains lower production if the production capacity is idle for lack of materials.

The reasons for keeping stock

All these stock reasons can apply to any owner or product stage.

buffer stock is held in each workstation against the possibility that the upstream workstation may be some delay in providing the following item for processing. While some processes carry very large buffer stocks, Toyota offers one (or few elements) and moved to eliminate this type of stock.

safety stock is held against the machine or process in the hope / belief that the failure can be repaired before the stock runs out. Such actions can be eliminated by programs such as Total Productive Maintenance

Overproduction is held because the forecast and actual sales do not match. Make to order and JIT eliminates this type of action.

stock within batch are retained because part of the process is designed to operate on a consignment basis but only the treatment of individual elements. Therefore, each element must wait for the lot of all batch process before proceeding to the next post. This can be eliminated by a single piece of work or a lot size of one.

fluctuations in demand for equity takes place when production capacity is unable to decline the request. Therefore, the stock is built at the time of the decline in the use to be supplied to customers when demand exceeds production capacity. This can be eliminated by increasing the flexibility and the ability of a production line or reduced by a transfer to the load balancing item level.
stock line balancing occurs because the various sub-processes in a book online at different rates. stock therefore accumulate after a fast sub-process or before a large batch size in manufacturing. Line balancing will eliminate this type of stock.

Stock shift takes place after a subprocess which has a well or change over time. This stock is then used as change-over happens. This stock can be removed by tools like SMED.

When these stocks comprise the same or similar, it is often the work practice to hold all these stocks mixed before or after the sub-processes to which they relate. This "reduced" costs. Because they are mixed up together there is no visual reminder to operators in the vicinity of the sub-processes or management of the stock is due to a particular cause and should be the responsibility of a particular individual with inevitable consequences. Some plants have centralized stock holding across sub-process that makes the situation even more acute.

The basis of inventory accounting

Inventory must be taken into account where it is held across borders accounting period as expenses generally must be compared with the results of this expense in the same period. When processes are simple and short, and stocks were small but with more complex processes, then stocks have become more important and significant value on the balance sheet items. This need for the value of unsold goods and incomplete prompted many new behaviors in the practice of management. Perhaps the most important are the complexity of the recovery of fixed costs, transfer pricing, and the separation of direct overhead costs. This so-called, there was no "d. anticipate income" or "declare