Chapter1 Stocks and Inventories.ppt

Chapter1 Stocks and Inventories Aims of the chapter Introduce the ideas that lie behind inventory management. Define the terms used. Describe the general features of stocks, their purpose, importance and use. Stock 貯存;(知識等的)蓄積 進貨,庫存品,存貨 3. (公司的)股票,股份 4. 【英】公債,國債 5. 原料,材料 6. (湯等的)原汁,湯料 Inventory 1. 存貨清單;存貨盤存(報表);財產目錄[C][U] 2. 清單上開列的貨品;存貨[C][U] 3. 詳細目錄(或記載)[C] 4. 財產目錄(或其他細目)的編製[U] Stocks of materials Definition of terms Stock consists of all the goods and materials that are stored by an organization. It is a store of items that is kept for future use. An inventory is a list of the items held in stock. Stocks of materials In recent years, it has become more common to use ‘inventory’ for both the list of items and the stock itself, and the two terms then become interchangeable. An item is a distinct product that is kept in stock: it is one entry in the inventory. A unit is the standard size or quantity of an item. All kind of stocks need the same kinds of management. For simplicity, we will use the general term ‘material’ for anything that is kept in stock. Stock cycle Stocks are formed whenever an organization acquires materials that it does not use immediately. Figure 1.1 Each stock cycle has the following elements: An organization buys a number of units of an item from a supplier. At an arranged time, these units are delivered. Unless they are needed immediately, the units are put into storage, replenishing the stock. Customers, either internal or external, create demands for the item. Units are removed from stock to meet these demands. At some point, the stock gets low and it is time for the organization to place another order. Fig. 1.2 stock levels in a typical cycle Customer and supplier can be internal and external. The cost of holding stock is about 20 percent of its value a year. Organizations put a lot of effort into controlling these costs through careful inventory management. This function is also called stock control or inventory control. Reasons for ho