INVENTORY MANAGEMENT SYSTEM REPORT 2022

use theese invoices to creat the next month stock ordering

RUNNING HEAD: INVENTORY MANAGEMENT SYSTEM
0
Commercial
Cookery
August 7
2019

INVENTORY MANAGEMENT SYSTEM 1
Table of Contents
Introduction................................................................................................................................2
Report specifying important discussions during the work placement task................................2
Conclusion..................................................................................................................................2
References..................................................................................................................................3
Appendices.................................................................................................................................4

INVENTORY MANAGEMENT SYSTEM 2
Introduction
This report is prepared to highlight the importance and need of proper inventory management
system in an entity. The report discusses the observations of the inventory management
system of an organization. It contains the description of the roles of supervisor, staff
members, and buyers in the stock ordering and stock taking processes. The identification of
slow and fast-moving items in the entity and the preparation of stocktake sheet, discrepancy
sheet and shrinkage sheet with the help of purchase invoices.

INVENTORY MANAGEMENT SYSTEM 3
Report specifying important discussions during the work placement task
The inventory management system is a framework where records are maintained for the stock
received, issue, sold by the entity to keep a track of the quantity and price of the items of the
business. The process of inventory procurement and storage is a wide process which includes
identification of the requirements, preparation of stock orders, receiving of supplies,
recording of inventory and reconciliation of items.
In the entity, the supervisor is responsible for overviewing all the records of inventory and
assuring that the stock is properly control by the entity (Qureshi, et. al., 2015). The items of
the stocks needed to be identified as slow or fast-moving items which mean the items which
are kept in the stock for a long time versus the items which are sold immediately or in a
comparatively smaller period. This ensures the timely ordering of the items; the storage cost
of the goods is also depended on the items movement and the lower costs of ordering the
stock and storage increase the profit of the entity.
It is to be noted that the items are descriptively recorded in the books by the respective staff
members for the purpose, however, the reconciliation of the records with the actual
warehousing store is necessary to remove any discrepancies in the records and physical stock
(Kusrini, 2015). It also provides for the proper control and reduces the chances of theft and
misplacements of stock. Thus, it was observed that with a well-structured and appropriate
inventory management system the stock can be properly managed by the businesses.
Conclusion
The report has described the importance of the inventory framework in an organization. It has
defined the observations made during the preparation of different inventory reports such as
stocktake sheet, discrepancy sheet, and shrinkage sheet. It has highlighted the importance of

INVENTORY MANAGEMENT SYSTEM 4
classifying the items as per their time for the movement of goods which are the fast-moving
items and the slow-moving items. It has also explained the basis according to which the
classification of items is made. It has also defined the role of staff members, supervisors, and
buyers in the stock ordering process and stock-taking process. Thus, the report has briefly
depicted the inventory system in an entity.

INVENTORY MANAGEMENT SYSTEM 5
References
Qureshi, S.U., Ashfaq, J., Ul Hassan, M. and Imdadullah, M. (2015) Impact of extroversion
and narcissism on in role and extra role performance: Moderating role of impression
management motives. Pakistan Journal of Commerce and Social Sciences (PJCSS), 9(1),
pp.96-119.
Kusrini, K. (2015) Grouping of Retail items by using K-Means clustering. Procedia
Computer Science, 72, pp.495-502.

INVENTORY MANAGEMENT SYSTEM 6
Appendices
Stock ordering responsibilities
Supervisor Buyer’s Staff members
 Recording of the
purchases, keeping
accurate record of
physical units of
inventory in the stock
and maintenance of
stock accounting
records.
 Maintaining and
monitoring the levels
of stock such as
minimum level,
maximum level, danger
level etc.
 Initiate the purchasing
order when required,
tracking the order and
 Make research for the
companies available
with the required
material and analysis
them.
 Selecting and
purchasing of good
quality material from
the market.
 Maintenance of quality
relationship with
suppliers for getting the
best quality at
negotiated prices.
 To process the
purchase requisition
and inform the
 The order clerk is
responsible for
ordering the requisite
quantity of goods with
the supplier.
 Stock clerk is
responsible for
receiving, unpacking
and unloading of the
order. They are obliged
to differentiate the
products and store
them in a categorised
manner.
 Inventory clear
provides assistance to
the inventory manager

INVENTORY MANAGEMENT SYSTEM 7
mitigating any problem
in the process.
 Reconciliation of the
goods received in the
delivery with the
ordered items to ensure
correct receipt of
goods.
 Process the receipt of
goods and providing an
approval for the
payment of supplies.
management about
their order status.
 Harmonization with the
management for the
warehousing or storage
of goods.
 Arranging the proper
transportation of the
goods for safe and
timely delivery.
 Evaluation of the
quality of goods
delivered by the
suppliers and provides
feedback to the
suppliers and the
management.
in monitoring the
supply of goods in the
organization by
keeping track of the
supplies received.
 Production clerk of the
firm provides
assistance to the
production department
in documentation,
recording and
maintenance of
supplies.

INVENTORY MANAGEMENT SYSTEM 8
Stock take responsibilities
Supervisor Staff members
A supervisor of the company is obliged to
check for the proper maintenance of the
inventory record to prevent any theft or
damages to the stock. The supervisor
analyses the recorded data and evaluates the
inventory. He is responsible for comparing
the physical and recorded quantity of sale
and find out any differences. The proper
record and management of inventory lie as
the responsibility of the supervisor who
approves the purchase and issue of
inventory items.
Staff members of the inventory management
system include the people engaged in the
proper maintenance of inventory and its
record. The stocktake responsibility of the
staff members includes the duty of receipt
manager to record the number of goods
delivered to the company. The recording by
storage manager to supply the details of
items in the store of the entity.
Responsibility of the cost accountant to
record every purchase and issue of items in
the stock to determine the correct position
of stock in the enterprise which includes the
items available in the stock with their
respective prices and quantity.

INVENTORY MANAGEMENT SYSTEM 9
Fast moving items Slow moving items Criteria used to assess the
performance
Coles Carrots Prepacked
1kg
%Coles Better Bag 1 each
 Identifying the
movement of the
stock from
warehouse to the sale
market.
 Availability of the
required items with
the suppliers.
Coles Celery 1ea Coles Navel Oranges apx
180g ea
Coles Fennel 1 bunch MEB Turkish Pide Bread
400g
Coles Red & White Seedless %Handee Ultra White Paper

INVENTORY MANAGEMENT SYSTEM 10
Grapes Prepacked 1.5 kg Towels 3pk  Comparison of the
order quantity and
received quantity of
goods.
 Average selling time
for the items.
 Checking the
inventory turnover
ratio to analyse the
period in which stock
is sold.
%Handee Ultra White Paper
Towels 2pk
Coles Turkish Pide 400g
Coles Navel Oranges
Prepacked 5 pack
Coles Deli Thawed Basa
Fillets aprx. 200g each
Coles Ginger loose apx 120g
ea
Coles Continental Parsley
Sleeved 1 bunch
Stocktake sheet
Product
reference
Quantity Price Total
quantity
Total value
Blu
Gourmet
1 3.70 1 3.70

INVENTORY MANAGEMENT SYSTEM 11
Pearl
Couscous
250g
Changs Pure
Sesame Oil
150mL
1 3.65 1 3.65
Coles Butter
Leaf Blend
120 gram
2 3 2 6
Coles
Continental
Parsley
Sleeved 1
bunch
4 + 2 + 2 3 8 24
Coles
Cranberry
Sauce 275g
1 2.65 1 2.65

INVENTORY MANAGEMENT SYSTEM 12
Coles
Ginger
loose apx
120g ea
0.116 kg 25 .0116 2.9
Coles Green
Oak Lettuce
1ea
3 3 3 9
Coles Mint
Sleeved 1
bunch
1 + 1 + 1 3 3 9
Coles Navel
Oranges
Prepacked 5
pack
4 2.5 4 10
Coles
Pistachio
Kernels 80
gram
3 4.40 3 13.20
MEB
Turkish
Pide Bread
1 3.30 1 3.30

INVENTORY MANAGEMENT SYSTEM 13
400g
%Handee
Ultra White
Paper
Towels 3pk
2 4.40 2 8.80
Staff member: XYZ
Supervisor: ABC
Date: __/__/_____
Stock Order Sheet- August
Inventory Name
Suppliers
Name Description
Order
Quantity
Quality in
Stock
Canol Oil Cooking
Spray Richard
small bottle of 400
gram 1 medium
Turkish Pride Richard
400 gm. will be
needed 1 high
Navel Orange Prepacked Richard prepacked of 5 pack 2 medium

INVENTORY MANAGEMENT SYSTEM 14
Green Cayenne Chillies
Loose Richard 50 gm. will be order 1 medium
Staff member: XYZ
Supervisor: ABC
Date: __/__/_____
Shrinkage sheet
Description Referenc
e no.
Dept. Total
quantit
y
New
price
Reason Total value
Blu Gourmet Pearl
Couscous 250g
001 1 3.70 Unchanged 3.70
Changs Pure
Sesame Oil
150mL
002 1 3.65 Unchanged 3.65
Coles Butter Leaf
Blend 120 gram
003 2 4 Market
demand
8
Coles Continental 004 8 5 Market 40

INVENTORY MANAGEMENT SYSTEM 15
Parsley Sleeved 1
bunch
demand
Coles Cranberry
Sauce 275g
006 1 2 Market
supply
2
Coles Ginger
loose apx 120g ea
008 .0116 20 Market
supply
.232
Coles Green Oak
Lettuce 1ea
009 3 3 Unchanged 9
Coles Mint
Sleeved 1 bunch
014 3 3 Unchanged 9
Coles Navel
Oranges
Prepacked 5 pack
016 4 3 Market
demand
12
Coles Pistachio
Kernels 80 gram
018 3 5 Increase in
costs
15
MEB Turkish
Pide Bread 400g
028 1 4 Increase in
costs
4

INVENTORY MANAGEMENT SYSTEM 16
%Handee Ultra
White Paper
Towels 3pk
019 2 4.40 Unchanged 8.80
Staff member: JKL
Supervisor: ABC
Date: __/__/_____

INVENTORY MANAGEMENT SYSTEM 17
Discrepancy sheet
Area Fixture/
Item
Description Price Origina
l count
Recoun
t
Variance
Blu
Gourmet
Pearl
Couscous
250g
1 1 0
Changs
Pure
Sesame Oil
150mL
1 1 0
Coles
Butter Leaf
Blend 120
gram
2 1 1
Coles
Continental
Parsley
8 2 6

INVENTORY MANAGEMENT SYSTEM 18
Sleeved 1
bunch
Coles
Cranberry
Sauce 275g
1 0 1
Coles
Ginger
loose apx
120g ea
.0116 .0116 0
Coles Green
Oak Lettuce
1ea
3 1 2
Coles Mint
Sleeved 1
bunch
3 1 2
Coles Navel
Oranges
Prepacked 5
pack
4 2 2

INVENTORY MANAGEMENT SYSTEM 19
Coles
Pistachio
Kernels 80
gram
3 3 0
MEB
Turkish
Pide Bread
400g
1 1 0
%Handee
Ultra White
Paper
Towels 3pk
2 2 0
Staff member: PQR
Supervisor: ABC
Date: __/__/_____
Note: The quantity and items are extracted from the invoices provided and the remaining
figures are assumed to complete the assignment.