Inventory management process

Cash-to-cash cycle time The time between payments for product components to suppliers to the time customers make payments. This parameter has become an important measure of supply chain performance, reflecting both financial and inventory management process performance. Most have negative measures ranging from 30 to 80 days. Some, notably Dell, have a positive cycle time, meaning they collect payments from customers before they have to pay suppliers. 

The fundamental business role of the ATP function is to provide a response to customer order requests based on resource availability. In order to make a reliable response to a customer order, an ATP system must insure that the quantity promised can be delivered on the date promised. Thus, an ATP system must include both order promising and order fulfillment capabilities. In addition, an ATP system should be able to dynamically adapt resource utilization and to prioritize the customer orders so as to coordinate supply and demand in a way that maximizes profit. By its very nature the ATP system should operate within a short-term operational environment where most resource availability is considered fixed because of procurement lead-time limitations. This distinguishes ATP systems from traditional plannings scheduling and inventory management processes. 

Suppose you are the director of operations for the southeast region for consumer electronics retailer BigBuy. You have been asked by the chief operating officer of the company to review tiie inventory management processes and procedures in place at all BigBuy retail outlets in your region. 

Avoid manufacturing mnltiple styles of fixtures. Ensure that you have an inventory management process that does not run out of pins at midnight, but does not have half a mMon dollars tied up in obsolete pin inventory. Consider outsonrcing at least the more difficult fixtures to speciahsts. You may save time, plus gain a partner who provides exposure to alternative techniqnes and materials. 

Real time available-to-promise (ATP) logic Required integration with scheduling and inventory management processes and systems. 

Resources are an available supply of equipment, environment, machines, materials, processes, labor, documentation, and utilities, such as heat, light, water, power etc., which can be drawn upon when needed. This therefore requires detailed planning and logistics management and may require many lists and subplans so that the resources are available when required. Inventory management is an element of such planning. 

FIGURE 12.1 Typical compound management processes supporting HTS. Top (gray area) inventory management. Middle compound dispensing and distribution. Bottom (gray area) HTS activities. 

Batch Crystallization Batch crystallization has been practiced longer than any other form of crystallization in both atmospheric tanks, which are either static or agitated, as well as in vacuum or pressure vessels. It is still widely practiced in the pharmaceutical and fine chemical industry or in those applications where the capacity is very small. The integrity of the batch with respect to composition and history can be maintained easily and the inventory management is more precise than with continuous processes. Batch crystallizers can be left unattended (overnight) if necessary and this is an important advantage for many small producers. 

Throughout the validation management process there shonld be formal opportunities to review validation practices. The status of validation work is likely to change some existing systems may be decommissioned, new systems may be planned, and the priorities of the current inventory work may vary due to changing company needs. Validation Policy and Validation Procedures may change as a result of new regulatory requirements or feedback from project experience. 

Technology and Processes Strategy execution IT capabilities inventory management turnaround times flexibility reengineering quality internal transparency. 

Plant Level is the integration of the manufacturing process with other plant functions such as accoimting, quality control, inventory management, purchasing, etc. 

Careful inventory management can help to minimize waste production from unused products. Obsolete stocks may cause process or application inefficiency resulting in loss of quality or need for disposal. Losses can also result from packaging damage, deterioration and from H oduct damage caused by temperature variations cn atmospheric... 

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