ENTRY LOGISTICS

ENTRY LOGISTICS

1. Inventory management

   • It is a transversal operation to the supply chain; composes one of the most complex logistical aspects in any sector of the economy to which it is applied.
     • The primary objective
       • it is to act as regulators between the rhythms of supply and the cadences or consumption of its outputs. What can be evidenced by: • Risk reduction on the certainty in the demand for products. • Lower the cost of production supplies. • Anticipate expected variations in supply and demand. • Facilitate the transport and distribution of the product.
     • Advantages of a management system
       • Establishing an inventory management system means adopting a procedure organization that allows: • Have all the information that affects the items to manage. • Properly accounting for items in stock. • Know its historical behavior. of rupture. • Forecast the average future needs to be met and accept a level of risk • Calculate the orders to be made, taking into account the decrease in costs of management and the conditions and limits of suppliers. • Maintain an adequate security stock.
   • Inventory management is understood as organizing, planning and controlling the set of stocks belonging to an organization. Organizing means setting criteria and policies for its regulation and determining the most convenient amounts of each of the items.
     • inventory management is based on having control over:
       • • At what time it should be ordered or produced. •How to protect yourself against changes in the costs of items. • How many units should be ordered or produced. • Which inventory items deserve special attention.

2. Inventory

   • • It is a supply of materials whose main scenario is to facilitate the continuity of the production process and the satisfaction of customer demand. • Within a production system, inventories act as regulators or buffers between the output rates of one phase and the input rates of the following ones.

3. Inventory types

   • It is essential to classify the products to determine the convenience of maintaining an inventory or not. For this, certain guidelines can be set that depend mostly on each company.
     • According to its physical and/or operational characteristics
       • Inventory of packing and packaging material: it is all products manufactured with materials appropriate, which is used to contain, protect, manipulate, distribute, transport and present products for sale to the public..
       • Inventory of finished products: they are those manufactured by the company, devoting all its efforts to obtaining them, since the sale of these to consumers or to other companies constitutes the object of the business activity.
       • Inventories of semi-finished material or products in process: are those products that are in the process of being produced but have not been finished and, therefore, are not available to the customer.
       • Inventories of raw materials or inputs: are all those elements that are included in the production of a product, these are transformed and incorporated into a final product. The raw material is used mainly in industrial companies, such as those that manufacture a product. It must be perfectly identifiable and measurable, in order to determine both the final cost of the product and its composition.
     • According to your logistic conception
       • Cyclical or lot inventories: these are inventories that are required to support the decision to operate according to lot size. This occurs when instead of buying, producing, or transporting inventory one unit at a time, it may be decided to work in batches; in this way, inventories tend to accumulate in different places within the system.
       • Seasonal inventories: Inventories used for this purpose are designed to economically meet seasonal demand, varying production levels to meet fluctuations in demand. These inventories are used to smooth the production level of the operations, so that workers do not have to be hired or laid off frequently.
       • • Speculative inventories: these are derived when a price increase higher than the costs of inventory accumulation is expected; for example, if interest rates are negative or lower than inflation
       • Security inventories: are those that exist in the company as a result of uncertainty in the demand or supply of units. The security inventories concerning raw materials protect against the uncertainty of the performance of suppliers due to factors such as waiting time, strikes, vacations. They are used to prevent shortages due to uncertain fluctuations in demand.

4. ABC Classification

   • It is a product segmentation methodology according to pre-established criteria (importance indicators, such as "unit cost" and "annual volume demanded")
     • To establish the levels of importance of a product, the following must be taken into account: • Annual sales • Unit cost . Supply and demand of the material • Availability of resources to produce them . • Reliability of providers • Storage conditions • Risk of obsolescence or expiration. • Service level required

5. Classification according to demand

   • Dependent
     • It is related to the demand for another item: Manufacturing components, raw materials, supplies or required spare parts.
   • Independent
     • is that which is determined directly by the market: Final products invoiced. Spare parts required by the customer.

6. Types of systems

   • Are a set of rules, policies and procedures applied to the maintenance and control of inventoried assets (materials and products) used in an organization. The system corresponds to: Sort orders and their reception. • Determine the size of each order and when it should be made. • Keep order information updated. There are two basic types of systems. of inventories
     • System P.
       • Constant period system or periodic system. A constant period is established between each order, which varies in size depending on the level of inventory and forecast demand.
     • System Q.
       • Economic order volume system. The main characteristic of this system is that it has the same batch size and is carried out when necessary depending on the level of stock in the warehouse and the forecast demand.