Railway Accounts Department Examinations

Showing posts with label ABC. Show all posts
Showing posts with label ABC. Show all posts

Wednesday, November 15, 2023

Inventory Control - Methods

 



Inventory Control - Methods

 

Method

Stands for 

Based on 

ABC

A / B / C

Pareto principle 

FSN

Fast / Slow / Non   - Moving

On the level of consumption (moving), frequency of demands and their utility

GOLF

Government / Ordinary / Local / Foreign - Source

On the source of supplies

HML

High / Medium / Low - cost per unit

On the unit cost of items

SDE

Scarce / Difficult / Easily - availability of item

On the criteria of availability of item

SOS

Seasonal / Off seasonal - item

On the nature of supplies

VED

Vital / Essential / Desirable - items

On the criticality in end use

XYZ

High / Medium / Low - Inventory value

On inventory value of items at a given time