The aim of Stock Management is to determine and implement activities that will minimize all inventory costs that will increase the profit of the enterprise. Availability and quantities of stocks in the enterprise may vary according to the stock turnover speed and life, as well as ease of supply and duration. The most important is the sector where the business is located. As the sector changes, the importance of keeping stocks will increase or decrease.
Excess inventories will be burdened by the entity in terms of financing [payments to excess inventories], as well as increasing the cost of inventory [adding inventories and control costs to inventory costs over time]. In addition to these, establishing effective supplier relations, creating continuous supply opportunities and achieving high turnover rates are among the secondary targets.
Commercial enterprises are established for profit. In order to realize this aim and to continue their activities, enterprises should have some economic values and keep these values ready for use at any time. Assets with economic value such as raw materials, materials, by-products, finished goods, merchandise, by-products, waste and scrap are called stocks.
Stock Management covers all the processes related to the stock, starting with the purchase of the commissioned materials and entering the warehouses to the sale of the products to the customer. With the correct Stock Management, you can increase the productivity and profitability of the company. For the proper inventory management, the control system that is most suitable for the stocks that the company should have to be selected should be selected.
They are the stocks of the basic materials that the enterprises procure from other companies for use in production. In a business producing furniture, chipboard, chipboard-lam, contra-plaque, MDF, MDF Lam, Profile raw materials are taken as stocks. In a restaurant, flour, sugar, fat, meat, salt pulses, rice and so on. The products are used as raw material.
Products produced in one enterprise can be raw materials for other enterprises. For example, raw materials used by a company producing chipboard are wood residues, slag and glue. They are produced by pressing various sizes and are sold as raw materials to furniture producing enterprises.
Businesses have to keep stocks of raw materials even if they only produce on order. This is necessary in order to prevent production disruption due to the prolongation of the raw material supply time and to deliver the product time. Of course, the ease with which the raw material is found and the speed of supply can affect the quantities in stock.
Factors affecting the availability of raw material stock
Semi-finished products are partially finished products which are obtained by the processing of raw materials, but which have not become the targeted product, and which need to be processed. In the restaurant, the meatballs prepared for grilling can be sampled as semi-finished products. For a company that produces computers, ram, hard disk and main board can be called semi-finished products. The company does not have to produce all of these parts. Only the motherboard can be produced by itself and other computer components can be imported and assembled.
In the case that production phase does not work in production enterprises with high number of stages, semi-processed products obtained at each stage should be stocked in certain numbers. For example, in a garment manufacturing enterprise, production continues in the form of first stage dyeing, second stage mold removal, third stage cutting, fourth stage sewing, printing / embroidery processes. Stopping the dyeing step means stopping the other steps if there is no dyed fabric stock. In order to avoid interruption of production, such enterprises have to keep stocks of semi-finished products.
Factors affecting the availability of semi-finished goods
Products are the assets that go to the warehouse to be delivered to the consumer after the transactions within the factory are completed. Products do not show much difficulty in counting, valuation and control since they complete a certain stage and stand still in a certain place.
An example of this is the fact that a white goods producer keeps products such as refrigerators and washing machines in their warehouses for sale. The stocks in the warehouse will be delivered as the orders arrive.
Auxiliaries
Indirect materials can be used in production and can be defined as materials. That are directly outside the primary material and materials. The main characteristics that distinguish indirect substances directly from the primary materials and materials are:
Indirect substances are considered in two main groups as auxiliary materials and operating materials.
Factors affecting the availability of finished goods
Business Supplies
They are part of the product and are often outsourced assets. These may be simple but commonly used parts such as bolts, batteries. Or complex parts mounted on large products such as electric motors and generators.
It is the stock that is held more than expected in order not to fall short of stock. Such inventories are held to meet the average demand between the two orders.
The reasons that require safety stocks can be summarized in 3 sections.
They are inventories that are ordered in certain periods and held to meet the current demand. In other words, active stock is the stock that is kept to meet the average demand in the period between two orders.
If we define active stock in general: hareketli Moving stocks, which vary between maximum and minimum in a long or regular period, are called active stocks ”.
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