inventory accuracy definition

Warehouse management systems use move tickets to direct and track material movements. Through a sample scenario, this seminar will provide attendees the opportunity to diagnose inventory problems and discover solutions as a class. The most common unit of measure is "eaches," which simply means that each individual item is considered one unit.

Tare weight—the weight of the container that holds the materials you are weighing. Smart shelve—as the name would imply, a smart shelf is a shelf that has capabilities beyond just preventing the stored product from falling on the floor. One function is to notify the materials/planner or buyer to produce or order materials, which is done by converting a planned order into an purchase order, production order, or transfer order. Wave picking—a variation on zone picking where rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders. Availability calculations vary from system to system but basically subtract any current allocations or holds on inventory from the current on-hand balance.

A method for exchanging data between systems based on a set of standardized specifications.

Hand-held computer—any portable computer that can be operated while holding it in one hand. 3PL—third party logistics.

Human-machine interface—any point where data is communicated from a worker to a computer or from a computer to a worker. However, EPC goes beyond UPC by not only identifying the product as an SKU, but also providing access to additional data (via the EPC Network) about the origin and history of the specific units. Queue—computer term referring to data that is awaiting further processing.

Registrants may transfer registration to another name up to 2 days before the event; please submit your request in writing to. Commodity—a logical grouping of inventory based upon user-defined characteristics. Common bar code readers consist of pistol-type scanners, wand scanners, and fixed position scanners. Container—can be anything designed to hold (contain) materials for storage or transport including cartons, totes, drums, bags, etc.

Routing—a list of operations used in manufacturing in conjunction with the bill of materials. Pick-to-trailer—order-picking method where the order picker transports the materials directly from the pick location to the trailer without any interim checking or staging steps. Many managers equate Inventory Record Accuracy with cycle counting, but there is a lot more to it than just counting. For example, in one industry they may have a classification of "building materials" that encompasses anything that would be used to describe all construction materials while another industry may have separate commodity classifications for "framing lumber," "decking materials," "fasteners," and "concrete products.".

See also Pick-go-light, Put-to-light. I use the term synonymously with the term "raw materials."

Benchmarking—the act of comparing measurement to a benchmark. Negative inventory—situation where the system tracking of inventory results in an on-hand balance that is less than zero.

Most common are the wired pistol-shaped devices used in retail stores.

Variance—a situation where the physical quantity does not match the system quantity. A-frame—a type of automated picking system. Discrete as opposed to process manufacturing. Backflush—method for issuing (reducing on-hand quantities) materials to a production order. See also Transaction by exception. Housekeeping—the orderliness and cleanliness of work areas and storage areas. ASQ—American Society for Quality. Only the exceptions require the manual entry of transaction details.

Subassembly—an item that has gone through an assembly process, but is also used in the assembly of other items.

Check characters are usually the result of a mathematical calculation based upon the data in the bar code.

Item history file—a database file that contains detail records for each inventory transaction that has occurred.

ways. Also known as the 80/20 rule. www.iienet.org. Tolerance—an allowable variation. Batch-level transactions are only possible with directed tasks. www.asq.org. Move ticket—a document used to move inventory within a facility.

Physical Markup Language (PML) is designed specifically for the EPC Network. Allocations—refers to actual demand created by sales orders or production orders against a specific item. www.mhia.org/mhms. FIFO is difficult to maintain in drive-in racking systems. Different industries will define commodity classifications differently. Portable computer—any computer that can be used while being transported. Count frequency is used to calculate cycle count period. Lane—a row of stored or stage materials. Cycle count number—number assigned to a group of cycle counts used to facilitate tracking and updating of transactions associated with the group. Bulk—the classic use of the term bulk (bulk materials, bulk inventory, bulk storage) in inventory management and distribution refers to raw materials such as coal, iron ore, grains, etc. Public warehouse fees are usually a combination of storage fees (per pallet or actual square footage) and transaction fees (inbound and outbound). Coproduct—the term coproduct is used to describe multiple items that are produced simultaneously during a production run. Accuracy—correctness of data to reality. Decoders are often called wedges because they frequently use a keyboard wedge interface to connect and communicate with a computer or terminal.

The manufacturing planning system will use the bill of material to calculate the material requirements for a manufacturing order resulting in the materials list. Net variance—a summarized variance number or amount where positive and negative variances are allowed to offset each other.

For example, from the time a shipping order is printed to the time it is loaded on the truck and the system is updated.


See also Unit-of-measure conversion.

Terminal emulation is also a common method used to connect portable computers (as in warehouse bar code data collection systems) to mainframe software. Cube logic is often incorporated but seldom used in WMS systems because of its tendency to treat your product as liquid (fitting a round peg in a square hole). Finished goods—inventory that is in a salable or shipable form based upon its location within the supply chain. Vertical carousels are frequently used in laboratories and specialty manufacturing operations. Overhead—indirect costs associated with facilities and management that are applied to the costs of manufactured goods through the manufacturing reporting process. Though some would categorize raw materials as very base materials in bulk form such as carloads of ore or unitized loads of paper, plastic, or steel, I generally consider anything used in the manufacturing process as a raw material.

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