TOOLS FOR INVENTORY MANAGEMENT

Re-order level. . The re-order level was 4 packets wheat flour and 2 tray of eggs before we make new orders.
Lead time. Ie it took the business 2 hours to receive goods ordered.

Working capital. Our business had an average working capital of shs 500,000 to meet the daily needs of the business like raw-materials, stationary among others.

Asset register. A document used to record and establish the number of assets at the end of each term.

EXAMPLES OF INVENTORIES KEPT BY YOUR BUSINESS PROJECT.
 Raw-materials e.g. wheat-flour.
 Goods in progress like dough.
 Fished goods e.g cakes, samosas.
 Stationary materials like files, books, pens etc.
 Office equipment like calculators, computers etc.

Watch the video below to know the importance of Inventory management

WAYS THROUGH WHICH YOUR BUSINESS PROJECT MANAGED ITS INVENTORIES.
 Carrying out periodical stock taking. E.g. lt was weekly conducted by the club stores manager.
 Carrying out periodical auditing of the business stock.eg. This was monthly conducted by the club auditor.
 Keeping proper Business records like sales records, production records etc.
 Determining reorder levels. i e. 2 packets of wheat flour.
 Labeling the business assets e.g All the club charcoal stoves were labeled by the club names
 Determining the lead time. It was just one day before ordered materials were received.
 Employing skilled personnel to handle materials. E.g. trained stores manager.
 Ensuring proper storage of finished Products e.g. all materials were kept in a dust and water free room.
 Maintaining sufficient working capital. i.e. We had average of shs.400000 as working capital.
 Ensuring tight security. All stores where inventories like raw-materials were kept were secured with strong padlocks.

THE CONCEPT OF STORE MANAGEMENT
Store refers to places where stock of raw materials or goods are kept before they are sold or dispatched to business which ordered for them

TOOLS FOR EFFECTIVE STORE MANAGEMENT
Stock cards. These were used to record stock received and issued in the store like wheat flour, cooking oil etc. .
Physical and stock counting. This was conducted on a weekly basis by the stores manager.
Stock reconciliation.

The business club updated and balanced all the records regarding what was in the store on the daily basis. Stock evaluation. This was also conducted weekly after stock counting to ascertain
the value of the stock counted.