Tecnologo Gestion Logistica

INVENTORY POLICY

Company Gelarti
Gourmet Ice Cream
MIGUEL NGEL MORA ULLOA

RONALD CORTES LOPEZ

DEINSE SINISTERRA CIRO

SENA

GESTION LOGISTICA
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ARMENIA QUINDO

2016

INVENTORY POLICY

MIGUEL NGEL MORA ULLOA

RONALD CORTES LOPEZ
DEINSE SINISTERRA CIRO

ELSA MARIA CRUZ GARCIA

INSTRUTOR

SENA
GESTION LOGISTICA
ARMENIA QUINDO
2016
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INTRODUCTION

As is to know; he basis of any commercial enterprise is the purchase and sale

of goods and services; from here comes the importance of inventory
management by the same. This accounting management will allow the
company to maintain control in a timely manner, as well as to know at the end
of the accounting period a realiable state of the economic situation of the
company.

The fundamental purpose of the inventory is to provide the company with the
ncessary materials for its continuous and regular development, that is, the
inventory has a vital role for consistent operation within the production process
and thus to meet the demand.

Some people who have a major relationship with costs and finances will
respond that the inventory is money an asset or cash in the form of material.
Inventories have value, particularly in companies engaged in purchase or sales,
and their values is always shown on the assets side of the Balance sheet.
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SPECIFIC OBJETIVES

1. Diagnose the curren situation of process carried out in the warehouse 1.

2. Establish structure of procedures that allow appotunities for improvemet
in each process.
3. Develop management indicators to quantify the use of physical space.
4. Classify products using the ABC methon for better inventory control.

THE INVENTORY
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The inventory is the set of good or articles that the company has to trade with
those, allowing the purchase and sale or manufacture first before
sellingthem,in a certain economic period . They should appeard in the curren
assets group.

It is one of the largest assets existing in our company Gelarti Gourmet Ice
Cream.The inventiry appears on both the balance sheet an the income
statemet. On the general balance sheet, inventory is subtratected from the
cost of the ice cream available for sale so that it can determine the cost of the
goods sold during a give period.

Inventories are tangible assets that are held for sale in the ordinary course of
business or to be consumed in the production of good or services for
subsequent sale . Inventories comprise, in addition to raw materials, products in
process and finished products or goods for sale, materials spare parts and
accesories to be consumed in the production of goods manufactured for sale or
in ttthe provision of services; Packaging and inventories in transit.

For our campany Gelarti Gourmet Ice Cream dedicated to the sale of ice
creams, since this is their main function and the one that will give rise to all the
other operations, they will need a constant summarized and analyzed
information about the ir inventories, which forces the opening of A number of
main and subsidiary accounts related to those controls.

For a mercantile company, the inventory consists of all the assets owned and
available for sale in the regular course of trade; le the merhandise sold will
become cash within a certain period of time. The term inventory includes the
goods awaiting sale (the good of a commercial enterpriose, and the finished
products of a manufafacture), the articles in process of production and the
articles that will be consumed directly or indirectly in the production. This
definition of inventories excludes long-term asset subject to depreciation, or
items that, when used will be classifiel as such.

Importance
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Inventory management, in general, focuses onfour basic aspects:

How many units ahould be ordered or produced at a given time.

At what point the inventory should be ordered or produced.

What inventory items deserve special attention.

You can protect yourself against changes in the costs of inventory items.

The inventory allows to gain time because neither the production nor the
delivery can be instantaneous, one must count on existence of the product to
which it can be resorted quickly so that the actual sale does not have wait until
the production process charge ends.

This allows us face the competition, if our company Gelarti Gourmet ice cream
does not satisfy the clients demand will be with competition, this means that the
company does not only store enough inventiry to satisfy the demand that is
expected, if not an additional amount To meet unexpected demand.

The inventory allows to reduce the costs to which it give rise to the lack of
continuity in the production process. In addition to be being a protection againt
price increases and agains the shortage of raw material.

If the Gelarti Gourmet ice provides a significant price increase in basic raw
materials, ic raw materials, you will have to think about storing a sufficient
quantity at the lowest price prevaling in the market, this has as a consequence
a normal continuation of the operations and good dexterity of inventory.

Inventory management is paramout within a production process since there

are several procedures that will guarantee us as a company, achieving
satisfaction to reach an optimal level of production.This policy consists of the
set of rules and procedures that ensure the continuity of the prodution of a
company, allowing a reasonable security in the shortage of raw material and
preventing access to inventory, in order to improve the rate of return.Your
success will be framed within the policy of inventory management:

Establish exactrelationships between the likely needs and supplies of different

products.

Define categories for inventories and clasify each coomodity into the
appropriate category.

Maintain supply costs to the lowest possible level.

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Maintain and adequate level of inventory.

Fast meet demand.

To use computers.

Inventory Management Techniques.

The methods commonly usedin management of inventories are:

The ABC system.

The basic model of economic order quatity CEP.

The ABC System.

In our Company Gelarti Gourmet ice cream, the inventory is divided into there
groups: A, B, C. In products A has concentrated the maximum investment.
Group Bconsists of articles following the A in terms of the magnitude of the
investment. The group C is composed mostly of a large number of products
that only require a small invesment. The division of your inventory into products
A, B and C allows the company to determine the level and types of inventory
control procedure required. Control of products A should be the most careful
given the magnitude of the investment involved while products B and C
would be subject to less stringent control procedures.

Basic Model of economic orden Quantity

One of the most elaborate intruments for determining the optimal order quantity
of an inventory itm is the basic model of the economic order quantity CEP. This
model can be used to control the A items of companies, because it takes into
account various operational and financial costs, determines the orden quatity
thant minimizes the total inventory costs. The study of this model includes:
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1. Basic costs.
2. A graghical method.
3. An analytical method

INVENTORY FORECAST OF THE MONTH

Productionis assigned to there field store, on a monthly basis. In the plant there
is only enoungh storage for a month's demand. The current production is
125.000.

In the following month, the storage requirements were forecast, current levels of
stock were checked and the desired level of stock availability for each stock
was recorded. The data are shown in the following table.

GELARTI Current level Forecast Level of

GOURMET of Forecast error(standa availability
ICE CREAM existence demand rd deviation) of existence
A B
ICE CREAM 5.000 liters 10.000 liters 2000 liters 90%
SHOP DELI
ICE CRAM 15.000 50.000 1500 95%
SHOP RICO
ICE CRAM 30.000 70.000 20.000 90%
SHOP UMMM
TOTAL 130.000

A= It is assumed to be normally distributed.

B = The stock availability level is defined as the probability that stocks
are available during the forecast period.
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INVENTOY CONTROL

The various aspects of inventory liability affect many departments and esch
department has some degree of control over the products as they move through
the various inventory process. All these controls, from the procedure to develop
budgets and forescasts of sales and production to the operation of a cost
system for the accounting department for the determination of costs of
inventories, constitutes the system of internal control of inventories, the general
functions are: Planning, purchase or procurement, reception, storage,
production , shipments and accounting.

PLANNING.

The basic for palnning production and estimating inventory requirement is the
bugget or forecast of sales. This must be developed by the sales department.

Production schedules, inventory budgets and details of the raw material and
labor required are prepared or developed with a view to the sales budget.
Although these plans are based on estimates, they will have some variation
with actual results, hawever actual results, however they facilitate a global
control of production activities,inventory levels and provide a basis for
measuring the effetiveness of current operations.

BUY OR OBTAIN

In the purchasing or procurement function two separate responsibilitiesilities

are usually distinguished: Production control, which consists of determining the
types and quatities of materials that are wanted. Ppurchasing, which consists
of placing the purchase order and maintaining the necessary vigilance on the
timely delivery of the material.

RECEPTION

You must be responsible for the following:

The acceptance of materials received, after they have been duly counted,
inspected as to their quality and compared with an approved copy of the
purchase orden.

The priority of reception reports to record and notify reception and acceptance.
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The delivery or delivery of the items received, to the warehouse (deposits) or

ther determined places. As a precaution against misappropriation of assets.

STORAGE

Raw materials available for processing or assembly (assembled), as well as

finished products, etc., may, be in the custody of a warehouse deparment.
Liability for inventories in warehouse includes the following:

Checking the quantities that are received t o determine that they are correct.

Provide adecuate storage as a protection against unauthorize elements and

removals.

Extration of materials against the presentation of departure authorizations for

production or shipment.

PRODUCTION

Materials in process are, generally under physical control, internal inventory

control including the following:

Adequate information on the movement of production and inventories.

Rapid notification of produced wastes, damaged materials, etc., so that the

corresponding quantities and costs of inventories. They can be properly
adjusted in the records.

Rapid and acurate information from part of the factory is a must for the proper
functioning of the cost system and production control produce.

All shipments, including those items that are not part of the inventories, should
be carriesd out, preferably, order of shipment, duly approved and prepared
indepently.

ACCOUNTING

With respect to inventories, it is maintaining accounting control o ver inventory

costs, as materials move through the processes of acquisition, production and
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sale. In other words, inventory management refers to the determination of the

quantity of inventory that should be maintained, the date on which orders must
be placed and the number of units to be ordered each time. Inventories are
essential to sale, and sales are essential to profits.

PROBLEMATIC

JUSTIFICATION
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Inventory control systems are designed to monitor levels and design systems
and produres for effective management. To remain in the market and ensure a
good participation, it should be kept in mind that warehouse management is
important to have it controlled since this involves a large number of strategies to
meet to achieve the objectives.