Stock Management, Inventory

One of the main application of computer, inventory management can manage in real time the quantities of goods from a depot - a store or manufacturing company. To manage the inventory, the software is based on the inputs / outputs of a product a database. It is often linked to Business Management or shop software.

Software inventory management enables to define different levels possible for each product:

• The Physical inventory: Quantities of goods actually in the warehouse
• The actual stock: + Physical inventory controls suppliers being delivered - customer orders in progress (to deliver).
• The minimum stock. This quantity can manage automatic orders to suppliers.
• The stock up. Used for commands suppliers, this allows to automatically order to achieve the maximum amount of a product.
• Alert: This concept is found only in software manages inventory Manufacturing (factories, assembly, construction site, ...). It takes into account the daily consumption and the minimum period of delivery and warned by an alert automatically when the warehouse might be out of stocks and thus stop production within days.

Inventory management can be done using different methods, depending on how the software will recognize the inputs / outputs. This affects the value of inventory in calculating the value of goods remaining in the deposit.

• FIFO: First in first out, first the back is the first out. This is the standard method of business management / point of sale and more used
• LIFO: Last In First Out, the last product is returned to the first out.
• Weighted average unit cost or Weighted average unit price. In this case, the stock value of the goods (the code) is recalculated at each new entry (taking into account the purchase prices of different receipts)
• Serialized. In this case, each piece of product is referenced by an own serial number (determined to manufacture). This method is generally not located in stadards stock management software.
• Batch: Often specific to the food industry or pharmaceutical. This solution can manage products by lot number, this method is used for traceability (food, dates of first refusal, ...).

Only the commercial management of high-level include the last 3 features of inventory management.

On the subject: OsCommerce (online sales) - Management Software