{"product_id":"inventory-management-procedure-tm1020","title":"Inventory Management Procedure | TM1020","description":"\u003ch2\u003e\n\u003cimg src=\"https:\/\/www.bizmanualz.com\/wp-content\/uploads\/2013\/05\/easily-editable-in-ms-word.png\" alt=\"easily editable in ms word\" width=\"123\" height=\"124\" loading=\"lazy\"\u003e\u003cstrong\u003eInventory Management Procedure\u003c\/strong\u003e\n\u003c\/h2\u003e\n\u003cp\u003eThe Inventory Management Procedure minimizes inventory and costs of inventory ownership. The procedure ensures the best inventory practices are employed and align with overall company financial objectives and meet operational needs. It applies to all departments involved in managing inventories including the Finance, Accounting, Purchasing, Sales and Operations. \u003cstrong\u003e (10 pages, 1455 words)\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eInventory levels are an important facet of financial management. Carrying large inventories mean significant costs of ownership. The overarching goal of any organization should be to minimize inventory levels of all types through the use of best inventory management practices that meet the organizational needs and service level goals.\u003c\/p\u003e\n\u003cp\u003eThe purpose of inventory management is:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eTo minimize and monitor inventory performance through metrics such as Days Inventory and Inventory Turns;\u003c\/li\u003e\n\u003cli\u003eTo minimize and monitor Cost of Ownership;\u003c\/li\u003e\n\u003cli\u003eEnsure that inventory practices do not adversely affect the company’s financial performance; and\u003c\/li\u003e\n\u003cli\u003eEnsure that best inventory practices are employed and that they meet the company’s needs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003cstrong\u003eInventory Management Responsibilities:\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eThe \u003cspan\u003eCFO\u003c\/span\u003e (Chief Financial Officer) is responsible for overseeing the company’s financial investment in inventories and for assisting in developing and reviewing the TM1020-1 INVENTORY MANAGEMENT PLAN.\u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003eTop Management\u003c\/span\u003e is responsible for developing inventory policies and overarching inventory goals documented in the TM1020-1 INVENTORY MANAGEMENT PLAN.\u003c\/p\u003e\n\u003cp\u003eInvolved \u003cspan\u003eDepartment Managers\u003c\/span\u003e are responsible for helping to complete the review of and implementing the TM1020-1 INVENTORY MANAGEMENT PLAN.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eInventory Management Definitions:\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003eInventory\u003c\/span\u003e – Quantity of goods and materials on hand in the form of raw and purchased materials, work-in-process, and finished goods (and for retailers, resale goods); typically appears as an asset on the company’s Balance Sheet.\u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003eWork-In-Process (WIP)\u003c\/span\u003e – All incomplete products and components in various stages of the manufacturing\/assembly process.\u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003eFinished Goods\u003c\/span\u003e – Complete products ready for sale and shipment.\u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003eInventory Turns\u003c\/span\u003e – The number of times that a company’s inventory cycles or turns over per year. Calculation methods vary slightly depending on the type of inventory being calculated (i.e. for raw\/purchased inventory:  cost of materials used\/average cost of materials in inventory; for finished goods inventory: cost of goods sold\/average cost of goods in inventory).\u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003eDays Inventory\u003c\/span\u003e – The average number of days of inventory on hand per accounting period (i.e. Turns per year = 365 days\/Inventory turns).\u003c\/p\u003e\n\u003ch2\u003e\n\u003cimg src=\"https:\/\/www.bizmanualz.com\/wp-content\/uploads\/2013\/05\/inventory-management-policy-procedure-2-262x300.jpg\" alt=\"Inventory Management Procedure\" width=\"212\" height=\"243\" loading=\"lazy\"\u003e\u003cstrong\u003eInventory Management Procedure Activities\u003c\/strong\u003e\n\u003c\/h2\u003e\n\u003cul\u003e\n\u003cli\u003eInventory Management Overview\u003c\/li\u003e\n\u003cli\u003eInventory Management Planning Inventory Management\u003c\/li\u003e\n\u003cli\u003eReviewing the Inventory Management Plan\u003c\/li\u003e\n\u003cli\u003eImproving Inventory Management\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003ch2\u003e\u003cstrong\u003eInventory Management Procedure Forms\u003c\/strong\u003e\u003c\/h2\u003e\n\u003cul\u003e\n\u003cli\u003e\u003ca title=\"Inventory Management Plan Template TM1020-1 \" href=\"https:\/\/www.bizmanualz.com\/inventory-management-plan-template\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"\u003eInventory Management Plan Template\u003c\/a\u003e\u003c\/li\u003e\n\u003cli\u003e\u003ca title=\"Inventory Management Report Template TM1020-2\" href=\"https:\/\/www.bizmanualz.com\/inventory-management-report-template\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"\u003eInventory Management Results Template\u003c\/a\u003e\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e \u003c\/p\u003e","brand":"我的商店","offers":[{"title":"Default Title","offer_id":50564786061450,"sku":"TM1020","price":35.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0801\/3955\/0858\/files\/14826.png?v=1792963612","url":"https:\/\/shopvirexora.shop\/products\/inventory-management-procedure-tm1020","provider":"Westvale Goods","version":"1.0","type":"link"}