Executive Summary Inventory Management

Sample Inventory Management Procedures Example

Inventory Management

Inventory management includes the maintenance of inventory levels including receipt and issue of material.

It also includes stores management and the administrative aspects such as binning, preservation, safe storage, material handling and maintaining physical inventory.

All stock items are stored in such a fashion that the oldest product is issued first. This prevents stock deterioration and/or expiration.

Scrap reporting and scrap disposal are also an integral part of Inventory Management.

General Procedure

All materials are categorised according to ABC classification and special care is taken for the protection of all “A” category items.

Perpetual physical verification of all the raw materials is to be carried out as per annual perpetual inventory plan. Any variance in the book quantity and the physical count is analysed and reasoned on the Physical Verification Sheet.

Any variation is to be approved by the appropriate authority and adjustment made accordingly. Refer Stock Adjustment section for details.