Inventory

Clay Pots
Definition
• A stock of items held to meet future demand
• List of goods and materials held available in stock
by a business
Nature
Vendor to RM to WIP to Finished Goods to
Customers
Nature
• Raw Materials - basic inputs converted into Finished
products through manufacturing process (soil)
• WIP - semi manufactured products need some more
works before they become finished goods for sale (
soil ready for molding and heating)
• Finished goods - completely manufactured products
available for sale ( clay pots)
Reasons to hold inventory
• Meet variations in customer demands (unexpected
demands)
• Pricing ( to avail discounts)
• Process and supply surprises ( internal: own factory
defects; external: delays of incoming goods)
Objective for Inventory Managent
• For efficient and smooth production and sales
operations
• Efforts to place an order at the right time with the
right source to acquire the right quantity at the
right price and right quantity
Functions
• Track inventroy
• How much to order
• When to order
Process of tracking inventory
Vendor of soil - RM ( PURCHASE OF RM)

Beg inventory of RM
+ Sacks of soil purchased
= RM available for production
- RM placed in process or bsta an inhatag sa trabahador
= Ending inventory of RM
RM to FG
Beg RM na nakarawat for process
+ RM placed in process
= Total inventory placed in process
(Natapos )
= Ending WIP Inventory
FG to sale
Beg nga biso
+ Nakarawat nga biso
= Biso available for sale
- nabaligya
= Ending na biso na wa kabaligya