Logistics

Logistics

1. Inbound logistics. This involves inventiry management activities, planning and purchasing, stock policies, turnover levels and the correct one planning your supply needs for finished products.

2. The fundamental objectives of inventory management are: -Minimize "possible" stock levels. -Ensure the availability of stocks ( finished product, product in progress, raw material, input, etc.) at the right time

   • cost to order
     • For commercial activity: it consists of the process of issuing an order ( telephone calls, administrative expenses of paperwork).
     • For the productive activity ( manufacturing or assembly): it consists of the costs associated with theprocesses of enlistment of production runs, in addition to the logistic process of transmission of orders "internal customer concept".

3. Types of inventories Classification according to your level of completion Inventories can be cataloged according to their degree of completion in: Commodity Inventories Supplies and Materials Inventories (Second order raw materials) Inventories of Products in process Inventories of finished products Packaging Product Inventories

4. Another factor that affects the maintenance cost is the known opportunity cost, which is related to the investment made in the operation of the inventories.

5. Stock Break Cost (Non-Existences Cost). The stock break cost woorks as a "Shadow Price" in relation to each in inventory that enables the double-entry process in the search for a balance between inventiry operating costs.

6. Classification according to its location with respect to the company's facilities

   • Inventory in transit: Those units belonging to the company, and that are not located in its physical for example: Merchandise en route, in reception control.
   • Plant inventory: They are all the units in the custody of the company and that are located in its specific physical facilities, for example: Raw materials warehouse, intermediate warehouse, packaging warehouse, tool warehouse, maintenance warehouse, etc.

7. Classification according to its function According to functionality, inventories can be classified into:

   • Operating Inventory
   • Security Inventory

8. Cost management These costs that arise are of four types: Acquisition cost Storage cost Provisioning cost Breakage cost

9. ANALYZING THESE CONCEPTS WE CAN DEFINE: 1. Economic or administrative stock as the set of products, merchandise or materials that are the property of the company and can be at fixed points 2. Physical stock are products that, in addition to being the property of the company, are stored and the entire logistics process is necessary for them

10. PROVISIONING INCLUDES: • The planning and management of purchases • Storage of the products necessary for normal operation • The application of techniques that allow maintaining minimum or safety stocks for each material

11. OBJECTIVES THAT THE COMPANY PURSUES WITH A GOOD PLANNING OF THE PROVISIONING ARE: 1. Establish a sufficient inventory 2. Minimize investment in stocks. 4. Intimate communication with the purchasing department.

12. THE TYPES OF STOCK ACCORDING TO THEIR RELATION TO PRODUCTION AND SALES AND THE PURPOSE THAT THE COMPANY PURSUES, THE FOLLOWING TYPES ARE DIFFERENT: 1. Active stock 2. Safety stock 3. Optimal stock 4. Zero Stock 5. Seasonal stock 6. Speculation stocks 7. Stocks in transit 8. Recovery stock 9. Dead stock

13. Stock management Inventory management aims to ensure that supplies are carried out at the lowest possible cost, that is, carry out the necessary studies and answer questions. Applying good stock management, the company will be able to dispose of the necessary products in the necessary quantities and when they are useful to them.

14. STOCK MANAGEMENT SHOULD BE DIRECTED TO ACHIEVE: 1. Establish a sufficient inventory, so that production does not lack raw materials and other supplies. 2. Minimize investment in stocks, to minimize storage costs for loss or damage to the product. 3. Know the optimal order volume. 4. Know when to choose to order or not, based on establishing a balance between a minimum level of stock and the needs of the company.

15. THESE VARIABLES ARE: 1. The level of service offered. 2. Sales forecast. 3. Management costs. 4. The delivery time of suppliers.

16. STOCK SIZE LEVEL The level of stock must take into account in a decisive way two factors, the balance with the rhythm of production and sales of each product.

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