You're struggling to manage raw material inventory. How can you avoid overstocking or understocking?

Raw Material Inventory- Avoid over stocking. For Project base manufacturing- Do analysis of last 2 moths RM buying pattern and utilized raw material in production. Schedule minimize maximize criteria for each type of raw material for next two months RM stock. Monthly physical vs system inventory count should be taken. For product base manufacturing- 5S is best example for maintaining required stock of RM & avoid overstocking.

A simple & stringent way is very helpful in these kinds of situations.Just need to follow Re-Order Calculation point and Re-order calculation quantity. 1. Finalize Maximum CAPA 2. Control uncertainty in FCST (Forecast) 3. Develop domestic supplies as a backup vendor and to reduce L/T. 4. Do ABC analysis for prioritising product and inventory items.

Making sure you scan each pallet before going on to the trailer will prevent product from being missed yes we are human and make mistakes but starting with each load will prevent this

Inventory classification is a very fundamental approach in inventory management to avoid overstocking and under stocking. Classifying your inventory into the fast, moderately and slow moving advises you at the point of purchase on quantities needed to avoid overstocking or under-stocking unnecessarily. Inventory control can also largely be dependent on forecast. Inventory forecast can be historical, demand forecasts, market study or forecast by operations depending on the type of industry you are in. Setting reorder level using historical and demand study can also be used for inventory management.

To manage inventory, it is crucial to check the inventory on hand, the actual usage and future dependent demand. These three areas should be analyzed on a timely basis in order to prevent or lessen possibility of overstocking or understocking of inventory.

Creating a spreadsheet to coordinate sales and production that works closely with inventory control that monitors historical data plus estimated growth can be very beneficial. These require people with a strong analytical mindset. Creating a team that works to their strong points is a must.

If the company runs at a steady state with only planned outages then watching usages and trends is huge. With proper information and inventory levels you can calculate out what is needed and when. If a company has unplanned downtime and outages then all of the above is needed along with very good relationships with vendors and trucking companies. Still with all the planning in the world there still might be times when inventory is higher than desired, but you would have to adjust with later raw materials orders. In my opinion, as long as there is storage and long shelf lives along with FIFO then having more is better than having less and losing production due to lack of raw materials.

Managing raw material inventories through demand forecasting requires a continuous and iterative approach. Forecasting is not a one-time task; it should be regularly updated to reflect changing conditions. To minimize significant inventory fluctuations, forecast for multiple periods rather than just one. For instance, if you typically forecast monthly, consider extending your forecast to three months as a single cycle. Initially, project higher quantities for the first month and adjust downward in the subsequent months based on actual usage. This approach helps maintain more stable inventory levels and better aligns with actual demand.

Inventory related system such as tracking system and ERP system (SAP) are very crucial in inventory cost and quantity management. They enhances your tracking process following your preferred approach of management and makes your past and present inventory data available for your future forecast and reports.

Everyone managing stocks must always follow FIFO. However, keeping an eye on the stock amount and shelf life is very important, so if the forecast shows a possible overstocking, don't wait; repurpose materials that can't be used for their original purpose.

Need to analysis all data in front to consumer end all include demand ,wastage, and quality work of employee ,need some one professional and vigilant team leader

Periodical inventory check and count is a dependable measure to review your inventory management process. It can also be use to manage and improve your inventory process.