Description

The Inventory Control application is designed to provide materials management personnel with tools for planning, controlling, and analyzing inventory levels.  Timely and accurate information is needed for effective planning and control.  Online inquiry capabilities and immediate posting of inventory and order-related activity provide the framework for accurate and timely information.

The installation of several key MAC-PAC applications can provide the Inventory Control application with additional capabilities.  Before the Inventory Control application can be installed, the Design Engineering application must be operational.  This application sets up a data base that defines the various parts used by the Inventory Control application.  In a manufacturing environment, the Shop Floor Control application can generate the labor requirements for manufacturing orders and provide further control over manufacturing order quantities at the operation level of detail.  Installation of this application, however, is not required for the installation of Inventory Control.  The Requirements Planning application satisfies the material requirement needs for a manufacturer.  Order action is suggested based on the current inventory position and the stated requirements for all parts.  Order action suggested by Requirements Planning Generation is acted upon in the Inventory Control application.

The Inventory Control application performs three major functions:  material planning, material control, and inventory analysis.  The maintenance, reporting, and inquiry capabilities provided by the application are organized according to these functions.

Material Planning

The material planning function encompasses several subfunctions.

·     Maintaining manufacturing orders for parts.

-    Manufacturing order description, quantity,date, and user-defined information is maintained simultaneously with the component requirements for that order.  If the Shop Floor Control module is installed, labor requirements information can also be maintained for manufacturing orders.

·     Order shortage and part availability reporting assists users in evaluating short- and long-term inventory and on-order positions.

-    Short-term inventory needs are evaluated through an order release horizon, which serves as a cutoff period.

-    Order shortage reporting is used to evaluate short-term inventory levels.  It highlights components, for those orders scheduled to be started within the order release horizon, whose quantity requirements cannot be met with on-hand inventory.

-    Part availability reporting is used to evaluate long-term inventory levels.  It highlights parts whose quantity requirements and start dates for orders cannot be met with the available inventory and on-order amounts.

·     Online status of manufacturing orders and part availability is displayed through inquiry capabilities.

·     An inquiry feature is provided for display of orders that are scheduled for release within the order release horizon.  One or more orders can be selected for release through this inquiry.

Material Control

The material control function involves the movement of inventory among stock locations/companies/warehouses.

·     Inventory movement is controlled between orders and inventory.  This movement can be accomplished through the use of two transactions:

-    Component Issues request material from inventory for use in the manufacturing process.  For parts that do not require issue control, a simultaneous issue and receipt option (SIR) can be selected.  This option allows automatic withdrawal from inventory of a specified quantity of a component upon receipt of the parent part.

-    Manufacturing Order Receipts move completed production units from work-in-process to inventory.

·     Inventory movement is controlled among inventory locations.  This movement can be accomplished through the use of two transactions:

-    Inventory Adjustments increase or reduce inventory to account for adjustments.  User-defined adjustment codes can be established to identify the type of inventory activity (increase or reduction).

-    Stock Transfers record the movement of inventory among company/warehouses, among locations within a company/warehouse, or among inventory categories (balance types).

-    Inquiries are provided to display the online status of inventory by part, location, and company/warehouse.

Inventory Analysis

The inventory analysis function involves the ABC classification of parts, and the verification, adjustment, and monitoring of inventory levels.

·     Parts are assigned an ABC classification.

-    User-specified classification criteria guide the classification of parts into ABC classes.

-    ABC Inventory Classification reports list parts within company/warehouse to allow review of usage and performance.

·     Cycle counting is performed to verify and monitor inventory accuracy.

-    Cycle count schedules are produced based on user-specified criteria.

-    Warehouse personnel count inventory of the selected parts.

-    System and actual counts are reconciled online.

-    The cycle count performance report is produced to allow review of inventory accuracy.