It also helps In taking advantage of quantity discounts and provides a hedge against Inflation. Types of Inventories used by Prime Aluminum: Prime Aluminum has to lodge many functions of inventory, in order to do so they maintain 3 types of inventories: Raw material inventory and purchased components: The materials that are purchased but yet entered the manufacturing process. The main raw material. Is delivered from Karachi to Lahore by road through containers.
This raw material arrives In ruckus in the factory building where they check whether the quantity and quality of the delivered material is the same as ordered. Thus, the staff makes sure that it is cost effective and they will have to pay as per the quantity delivered to them. Len- process inventory: The products and components that are no longer raw materials but have yet to become finished products. The product in elongated pieces before cutting are stored temporarily and then shifted to the cutting machines (Auto cutter and puller system). The cutting Is done In such a way that the profile made is kept on over the other.
Finished Goods inventory: Prime Aluminum uses the latest technology staking and packing systems, each profile is packed separately ensuring maximum quality. After going through an extensive quality management system the profiles are packed and staked for further manufacturing and transportation. Since the completed product Is ready for shipment, the packed profiles are kept In the warehouse where a separate inventory record IS kept by a separate Inventory manager. Cycle counting is a continuing reconciliation of inventory with inventory records.
The rows of the profiles are multiplied by the columns to determine the total number of cartons of OLL present In the warehouse for this purpose. For record accuracy the owner/dielectric of the company makes unannounced visits to the storage warehouse and counts the number of cartons/tins present. The number of cartons/tins actually present must be equal to the quantity stated by the inventory officer. In case of any gap, the employees of the inventory department are considered liable. This is very important for Rata Ghee Mills to make precise decisions about ordering, scheduling and shipping.
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