Every inventory of goods in a company with other companies can be the same but there are also differences, this depends on the products offered by the company. By controlling and supervising the stock of goods in the warehouse, can reduce the operating costs of your company. cheap storage units is a place that is used to store some supplies. Whatever type of company must have a warehouse, this is used to facilitate business activities or operations of a company. For companies that are involved in the trading of inventory, this is the embryo for determining margin. Especially for products that are very difficult to obtain, so that the price increases.
In this inventory, there are several methods, namely FIFO, LIFO, and average cost. The meaning of FIFO is to prioritize goods that enter the warehouse first to be released or used first. Then for LIFO, which is to prioritize the items that entered the last to be traded first. And lastly, there is an average cost, taking the average price of the goods, both the earliest and the last ones entering the warehouse. In recording this inventory you can use several methods, but there is a common method, namely periodic. This one method records goods by checking the physical goods, and the period that is carried out is determined. And you can also use the perpetual method. This method is more detailed and detailed because the goods that enter and leave are recorded on the same day. The LIFO method can also be used for items that do not expire easily, this is used in fashion products, these products often change trends. Then for this Fifa method, it is used for products that expire easily such as food items.
Even though you already know some of the methods we have presented above, surely you are also curious about how to manage supplies. Companies also need to see how many products can be produced this month. This is done to find out or estimate how much raw material inventory must be prepared. This minimum stock amount can be determined from the average use with the lead time for goods fulfillment. After that you can calculate the inventory budget, if you buy in large quantities, it will certainly be cheaper, when compared to retail. In calculating this inventory budget, you need data from the reorder point then multiplied by the product market price.