inventory optimization

Perpetual Inventory Accounting for Manufacturing Companies

Perpetual Inventory Accounting for Manufacturing Companies
What Is Perpetual Inventory? Complete Guide for Manufacturing Companies Introduction Perpetual Inventory is a real-time inventory accounting system that continuously updates inventory quantities, inventory valuation, production costs, profitability, and financial records whenever a transaction occurs. Many manufacturing companies know what inventory they have. However, without Perpetual Inventory Accounting, they often struggle with delayed financial visibility, inventory inaccuracies, hidden profitability leakages, and excess working capital locked in stock, making it difficult to take t...
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Action Plan for Inventory Optimization

Inventory Optimization has always been challenge for SMEs. The objective of this article is to suggest actionable steps for inventory optimization for SMEs. Steps mentioned in this article are prepared based on data analyzed from various process industries. We will cover inventory optimization for discrete manufacturing in separate article. 1) Identify Consumption Pattern and Consumption Rate: Analyze your past consumption data of minimum 2 to 3 years consumption. Based on analysis of past data you should be able to segregate items into different consumption patterns. Few examples are: ...
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