Inventory

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inventory

[′in·vən‚tȯr·ē]
(engineering)
The amount of plastic in the heating cylinder or barrel in injection molding or extrusion.

Inventory

 

the control of the presence and condition of material values (fixed and working capital) in kind as well as monetary resources, balances in bank accounts, and accounts with debtors and creditors. Taking inventory is one of the most important methods of control over the safeguarding of socialist property, over the qualitative preservation of raw and other materials and finished goods, and over the accuracy of warehouse management and current accounting. In the USSR, taking inventory is obligatory for all state, cooperative, and public enterprises, organizations, and institutions.

Inventories may be complete or partial, planned or unexpected. A complete inventory includes checking of all resources of the enterprise and of all its accounting relations; it is held on the basis of the Statute on Accounting Reports and Balances of State, Cooperative (Except Kolkhoz), and Public Enterprises and Organizations (this statute was confirmed by the Council of Ministers of the USSR of Sept. 12, 1951, with subsequent amendments and supplements). The purpose of a complete inventory is to ensure that the bookkeeping balances as of the end of the year are real and by the same token to prove the reality of the financial results of the enterprise’s activity as shown in these balances. Such an inventory is taken also at the time of organization or liquidation of an enterprise. Partial inventories are taken to check the existence of those resources which according to their physical properties are subject to natural loss when stored; they are also taken when writing off goods that have become worthless and when hiring personnel responsible for material values. Planned inventories are taken during the whole year according to a calendar chart confirmed by the manager of the enterprise or of the economic organization. Unexpected inventories are made to prevent embezzlement and misappropriation of material or monetary resources and to establish the extent of losses in case an embezzlement has taken place. Dates and the number of inventories during the year are established with due regard to different kinds of resources.

The taking of inventories is entrusted to a commission that is appointed by the manager of the enterprise and in which the chief (senior) accountant takes part. This commission is headed by the manager of the enterprise or by his deputy. The procedure of taking the inventory is determined by ministries and government departments.

References in periodicals archive ?
The objective of this study was to "Know our epidemic" by describing trends over time in HIV RDT inventories at select health facilities in Zambezia province, Mozambique, with the aim of identifying patterns of threatened inventory levels and/or stockouts of the RDTs.
We incorporate this aspect of consumer learning in our simulations by reducing the likelihood that a consumer agent will prefer to purchase Manufacturer A's Product A in the future after experiencing a stockout when a different brand is purchased or the consumer decides to not purchase at all.' In other words, when a stockout occurs and the consumer agent decides to either purchase Product B or to not purchase at all, the likelihood that the consumer agent will choose to purchase Product A in the future will be reduced by 2 percent and 5 percent for high and low brand loyal consumers respectively.
Similarly, when q [less than or equal to] D, the loss caused by underproduction is defined as the stockout loss [DELTA][[pi].sub.2].
An examination of the causes for retail stockouts. International Journal of Physical Distribution & Logistics Management, 43(1), 54-69.
Notice that the stockout risk target can be converted into an analytical constraint which has been considered in some inventory optimization problems in recent research (see [41, 42]).
Our research approach utilizes an analytical LT model to derive the five LT decision rules, as detailed in the Appendix, to assist supply chain practitioners to implement LT to improve supply chain systems performance by minimizing total inventory costs where stockout is one key cost component.
P is the probability of a stockout per order cycle and E is the expected number of shortage per order cycle.
Stockout costs are the costs of lost opportunity, they occur when there is unsatisfied demand in some period.
Completing the product only as it is demanded, and completing it as near to the customer as possible, can reduce inventory holding costs and stockout costs.
This study defines a stockout as a situation where an item that is regularly commercialized at a point of sale and occupies a specific place on the shelves is not available to the consumer in the store at the moment of purchase.
According to a recent Grocery Manufacturers of America survey, stockout rates for promoted items are two times the level of the stockout rates for non-promoted items.