Description : Can Forecasting Help In Controlling Inventory?
Last Answer : Yes, through the use of forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.
Description : What Is Mrp? And How Is Lot Size Used?
Last Answer : MRP is short for Materials Requirements Planning and it is a production planning technique that's used to manage the manufacturing process. It is basically used to determine your Material ... the nature of material requirement in terms of Weekly, Monthly, Quantity and Maximum Replenishment.
Description : What Is A Order Point?
Last Answer : A order point is a point in time at which a order is placed to replenish goods in inventory.
Description : What Is A Gr Blocked Stock And When Is It Used?
Last Answer : The GR blocked stock is an option used in the goods receipt process when you are not sure about the quality of the goods received. In such a case, the stock is maintained as GR blocked either from a material viewpoint or exclusively for a purchase order item.
Description : How Does The Consignment Cycle Operate?
Last Answer : The various steps in consignment cycle are: 1. Create consignment info record with proper tax code. 2. Create Purchase order with item category K. 3. Create output condition record for KONS (output ... (GR). 5. Payment is settled through MRKO transaction even if invoice verification is not done.
Description : What Do The Letters In The Eoq And Stocking Cost Formula Stand For?
Last Answer : The letters in the formulas represent the quantity ordered(Q), the carrying cost of a unit(C), the demand for the units(D) and the cost of completing a order(S).
Description : What Is Interference?
Last Answer : Interference is a factor in forecasting demand. Interference is made up of all the factors that a forecaster has no control over. Factors that may be considered interference include natural disasters, unusual customer demands, or rare events in the business period.
Description : What Is Difference Between Contract And Scheduling Agreement?
Last Answer : Contract is a long term outline agreement between vendor and ordering party over predefined material or services over certain framework of time whereas scheduling agreement is a long term outline ... predefined material or service which are procured on predetermined dates over a framework of time.
Description : What Do You Mean By Special Stocks?
Last Answer : Special stocks are stocks that are managed differently as these stocks did not belong to company and these are being kept at some particular location.
Description : What Is Inventory Control?
Last Answer : Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition, carrying ordering and stock-out ... However a store would need to have enough inventories to meet any needs of its customers.
Description : What Do You Mean By Outline Agreement?
Last Answer : Outline agreement is a long term purchasing agreement with vendor containing terms and conditions regarding the material that is supplied by vendor. Outline agreement are valid up to certain period of time and cover a certain predefined quantity or value.
Description : What Is Difference Between Planned And Unplanned Services?
Last Answer : In planned services at the time of procurement specifications like quantity and price are known in advance. It means nature and scope of service is clear before procurement whereas in unplanned ... service is not clear before procurement. These services can be extended as per the requirement.
Description : Explain What Are Some Of The Movement Types For Stock Transport Order?
Last Answer : One step transfers of materials can be posted using movement type 301. Other movement types are 303, 351, 641, or 643 in the stock transport order.
Description : What Are The Types Of Reordering Systems That Can Be Used In Inventory Control?
Last Answer : There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory. The fixed order ... system, just in time uses a constant flow of goods to match the level of demand.
Description : What Is The Importance Of Eoq?
Last Answer : The EOQ level is the point at which stocking costs are at their lowest point for a given item.
Description : Explain What Do You Mean By Reservation?
Last Answer : Sometimes, stock need to be blocked in advance so that it can be available at a particular point of time. This is known as reservation. Reservation ensures that stock is available and it can be used when required. Reserved quantity can be viewed by tcode MMBE.
Description : Explain What Is Invoice Verification?
Last Answer : Once goods are procured from vendor and placed in company's premises through goods receipt then we need to pay to vendor for acquired goods and services. The amount to be paid along with ... verify the invoice. This process of verifying invoice and paying to vendor is known as invoice verification.
Description : What Does Eoq Stand For?
Last Answer : EOQ stands for Economic Order Quantity.
Description : What Makes Eoq Work For Inventory Control?
Last Answer : The EOQ works if its four assumptions match the case it is used on. The assumptions are: 1. Annual demand, carrying costs and ordering costs can be estimated. 2. Inventory level is divided by ... order. 3. Stock-out, customer responsiveness and other costs not considered. 4. No quantity discounts.
Description : What Is Source List?
Last Answer : Source list include list of possible sources of supply for a material over a given framework of time. A particular material can be ordered from different vendors in different time intervals. This information can be maintained in a source list.
Description : Explain The Importance Of Eoq?
Description : Can A Computer Help In Forecasting Future Demand?
Last Answer : Yes, In the market today there are many computer software packages that can compute forecasted demand for goods held in inventory.
Description : What Is The Difference Between A Contract And Scheduling Agreement?
Last Answer : While a scheduling agreement is for consignment, subcontracting and stock transfer, a contract is for Standard items and can be limited to a certain quantity or value. A contract can be ... can have time-dependant or time-independent conditions subject to the customizations in the document type.
Description : If You Have Multiple Line Items In Purchase Order, Can You Release Line By Line That Purchase Order?
Last Answer : No, release is done only at header level in a combined way for all line items in case of purchase order.
Description : How Do You Create A Pricing Procedure?
Last Answer : The steps involved in creating a pricing procedure are: 1. Create condition tables. 2. Create access sequence according to the various condition tables. 3. Create condition types. 4. Assign access ... List down all the condition types in order so as to suit the business and pricing requirements.
Description : Does The Model Always Work?
Last Answer : No, the model only works for those cases that meet its assumptions.
Description : What Do You Mean By Consignment Stock?
Last Answer : In Consignment, material is available at our store premises, however it still belongs to the vendor(seller)/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor.
Description : When Should A Physical Inventory Be Taken?
Last Answer : A inventory should be taken at least once a year. If items are perishable, seasonal or highly demanded a inventory should be taken more often.
Description : What Is The Eoq Formula?
Last Answer : The EOQ formula is the square root of 2 times demand times order completion cost divided by carrying cost. The mathematical formula is square root of 2DS/C.
Description : What Is Release Procedure?
Last Answer : Release procedure means approval of documents like purchase orders and purchase requisition manually by the criteria defined in the configuration.
Description : Explain How Stock Is Being Transferred From One Plant To Another Plant?
Last Answer : Stock within plants is transferred with the help of stock transport order. One plant order the goods internally from another plant(receiving plant/issuing plant) with the help of stock transport order.
Description : What Is Material And Vendor Data Available At All Organizational Levels?
Last Answer : Yes, material and vendor data is available at all levels as it is normally created for company and it is valid for the levels below company.
Description : Suppose If I Get A Discount Will It Effect The Eoq Model?
Last Answer : Yes, a discount will cause the basic EOQ model to fail. To use a discount in determine a EOQ you must use the EOQ model with quantity discounts.
Description : What Are The Different Kinds Of Special Stocks Available?
Last Answer : Special stocks available are consignment stocks (from vendor), subcontracting stocks (to suncontractor), project stocks, pipeline materials, sales order stocks, stock transfer and third party.
Description : What Is Material Type?
Last Answer : Materials with some common attributes are grouped together and they are assigned to a material type. This will differentiate materials and allow organization to manage different materials in systematic manner in accordance to company's requirement.
Description : If Inventory Controls Are Followed, What Can I Expect?
Last Answer : By following your inventory policy you should be able to realize important advantages in inventory control. The first is reduced costs for inventories, along with reduced amounts of inventory. Theft and ... if inventory policy is followed. The final benefit will be increased profits for the store.
Description : What Are Transactions That Will Cause Change In Stock?
Last Answer : Goods receipt and goods issue will cause change in stock as goods receipt will increase warehouse stock and goods issue will decrease warehouse stock.
Description : When Should Reorders Be Placed?
Last Answer : Times for reordering goods vary dependent on the control system you use and its lead time. In fixed order quantities reorders should be placed when the safety stock is reached. In fixed period systems ... watch on inventory levels is needed so that reorders are placed before goods are out of stock.
Description : What Is A Rfq And How It Is Different From Quotation?
Last Answer : RFQ is request for quotation and it is a form of invitation that is sent to vendors to submit quotation indicating pricing and their terms and conditions while quotation is a reply by a vendor in response to request for quotation.
Description : What Makes A Good Forecasting Model?
Last Answer : A good forecast model will have reasonable costs. the accuracy of its forecasts will allow good decision making. The model will have ample data available for its use and a relevant time span. The model finally will have a low interference level.
Description : What Are Batches And How Are They Searched?
Last Answer : A batch is a collection of similar items from your stock that have the same characteristics. For example, all food items produced on a particular day belong to one batch. Batches are searched using ... code, key F4) based on the batch names or other properties that distinguish them from others.
Description : What Is Forecasting?
Last Answer : Forecasting is the process of estimating the future demand of a product.
Description : What Types Of Forecasting Can I Do?
Last Answer : There are two types of forecasting qualitative and quantitative. Qualitative uses personal opinions to determine forecasts. Quantitative uses numerical data and statistical modeling to determine forecasts.
Description : What Is Demand?
Last Answer : Demand is the quantity that customers are willing to buy. Demand can be found through forecasting and is needed to find the EOQ level.
Description : What Is Lead Time?
Last Answer : Lead time is the period of time from which a order for goods is placed until it is received by the store. Lead time is an important consideration for determining when orders should be placed.
Description : Explain What Should Be Recorded In A Physical Count Of Inventory?
Last Answer : When conducting a physical inventory the classification, location and number in stock of a good should be recorded.
Description : What Is An Order Quantity?
Last Answer : An order quantity is the amount of goods that an order requests be shipped to the store.
Description : Which of the following are the primary functions of all organizations? (a) operations, marketing, and human resources (b) marketing, human resources, and finance/accounting (c) sales, quality control, and operations (d) research and development, finance/accounting, and purchasing
Last Answer : (a) operations, marketing, and human resources
Description : Features to Look for when Purchasing a Coffee Maker?
Last Answer : Coffee makers come with many features that can make the coffeetaste better for longer. These features are important to considerwhen purchasing a new coffee maker.Drip Coffee MakersDrip coffee makers are ... makers have two stacked chambers,connected by a filter. The top chamber holds coffee groun
Description : What features should I look for when purchasing an all in one priinter?
Last Answer : If you're looking at an inkjet multi function printer, and if cost is important to you, you should price the replacement ink cartridges. Inkjet printers can use a large amount of ink, and often ... will cost more over the long run as they tend to have the most expensive replacement ink cartridges.