INVENTORY POLICY REPORT

LUIS CARLOSTOLENTINO GOMEZ

INSTRUCTOR

NATIONAL PRESSURE SERVICE

LOGISTICS MANAGEMENT

2017
 CONTENT

1) INTRODUCTIÓN.
2) OBJETIVES
3) BUSINESS
4) STRUCTURE AND STRATEGIES
5) Determine the type of inventory to implement in your training
project.
6) Set inventory policies (s) to sort, organize, schedule and transport
according to your project deformation
7) Perform a prognostic simulation of the demand for the products or
Services to be executed through the inventories.
8) CONCLUSION
 1. INTRODUCTION

The fundamental purpose of the inventory is to provide the company with the
necessary materials for its continuous and regular development, that is, the
inventory has a vital role for the consistent and coherent operation within the
production process and thus to meet the demand.

Some people who have a major relationship with costs and finances will respond
that the inventory is money, an asset or cash in the form of material. Inventories
have value, particularly in companies engaged in buying or selling, and their value
is always shown on the assets side of the Balance Sheet.

Inventories from the financial point of view while fewer amounts are better (the
correct conclusion for wrong reasons and a strange way of treating a real asset).
Those who view inventories as production materials have similar myopia. They
generally believe that the more the better.
 2. OBJETIVES

GENERAL OBJECTIVE

Provide or properly distribute the necessary materials to the company. Making

them available at the time indicated, in order to avoid increases in lost costs.
Allowing to correctly meet the real needs of the company, which must remain
constantly adapted. Therefore, inventory management should be closely
monitored and monitored.

Estimate the demand required by the company in order to determine the planned
quantities by using the forecasting technique.

3.BUSINESS

YOGURFIT- We are a leading company in the regional market, dedicated to the

manufacture and commercialization of dairy products, for this we have the
appropriate technology and a human talent committed to corporate values, with
professional ethics and with a high degree of responsibility for Our products are of
an excellent quality, which favor the health and nutrition of the people of the
region.

Faced with the lack of demand we decided to look for derivative options that were
more attractive to the final consumer, that is how we can offer attractive and little-
exploited products such as Natural yogurt that will innovate in the market to
generate enough resources to continue the project and build the business

4.STRUCTURE AND STRATEGIES

We will be the largest company and committed to our customers to obtain the
best quality products and the best price in the entire market, complying with the
strictest standards of quality, productivity and competitiveness to meet the needs
in both domestic and international markets. Regional
 PRODUCT

Yogurfit: It is the product of the fermentation of pasteurized milk, homogenized

and enriched in total solids (by concentration or addition of milk powder), by
addition of the yogurt culture and incubation at 40-45 ° C, without flavoring , Fruit
and sugar The culture consists of Streptococcus thermophilus (50%) and
Lactobacillus bulgaricus (50%). Depending on the consistency,

The quality of the yogurt is determined by three factors in addition to the initial
composition of the fermentation milk-substrate: the inoculated amount, the
incubation temperature and the incubation time. The storage time is 15-20 days at
4 ° C, with a maximum addition of 0.1% of a mixture of potassium benzoate and
sodium sorbate.

We will offer a high quality food product made with raw materials that meet the
sanitary requirements that our product requires with a minimum amount of
synthetic additive, such as colorants and preservatives, seeking to deliver to the
customer a food that retains the natural characteristics

Promotion Strategies

To attract customers we plan to offer promotions such as: for wholesale

customers who buy more than $ 2,000,000 in cash products will be given a
discount of 10%, on each purchase you make for this amount

For the wholesale clientele in the different points of sale the gift will be depending
on the quantity they leave, for example: if the customer leaves more than 6
products will be given a product more of the same presentation.

In case of a chain store to the product you will be given a glass with the company
logo.
 MOTIVATION OF SALE

To promote the sale will be given tastings in strategic sites such as the center of
the village where the product is to be sold, in the market square, at the exit of the
Church and in supermarkets. There will also be flyers that include product and
company information.

 The evaluation

 Sales

 Quality

 Reception

 Image

All this is going to be realized through some impellers that rotate during the
different points where the product has been sold.

Communication strategies

Taking advantage of the regionalism we will start selling our product 100% of the
Caribbean in stores, supermarkets of the region and with strategy of entrance to
the market, the first months will have impellers that offer to the client tastings to
give to know the quality of the product, like method of publicity We will use the
popular radio stations, we will also give flyers to inform people of the
characteristics and quality of the product.

These tactics and the use of means of communication are necessary to give the
publicity that the unknown product needs to enter competitively to the market that
can be reduced with the time when the product becomes a usual purchase in the
tolimenses families.

COSTS: Although the advertising costs and expenses generated by tastings are
high, they are strategies to enter the market in a competitive way.

Service Strategies

The after-sales service will be made through telemarketing and periodic visits by
the Commercial Area (seller who makes the sale, the person in the Commercial
Area asks how he went with his order and other aspects related to the sale).
Service at home without any kind of surcharge on the price of the product.

ikewise, when a customer has a nonconformity with a product, the corresponding

study will be done and within a period of no more than 5 business days a
response will be given to the customer. It always goes from the base that "the
customer is always right", in case the product is not in good condition or has any
inconvenience, it will give the customer a bale for 12 units of the same product ,
To remedy the possible damages caused and thus not lose the customer,
Because the customer is our reason to produce products of excellent quality

Procurement Strategies

The products will be distributed through a transport provided by the company, by

order with a minimum day of anticipation, with prices lower than those of the
potential competitions initially, where credit will be given no more than (30) thirty
days to the big buyers , After delivery of the product, in case of payment in the
first (5) five days of delivery will be made a discount of 5% on the total sale

PACKING

An important feature for packaging is that it is in a clean, unpolluted place, that

people who pack it have adequate clothing, white plastic boots, gowns, masks.
In general, they comply with good manufacturing practices and are constantly in
courses and food handling updates

PACKAGING

Each yogur in standard size baskets, covered in vinyl paper to prevent

contamination of the product and the presentation of the product is kept hygienic.

TECHNOLOGY
At the factory will use state-of-the-art technology, where the different processes
can be completely controlled, but also taking into account manpower for purely
human processes such as quality control in this case.

5.Determine the type of inventory to implement in your training project.

The success in the logistics system of the Company is based on the good
forecast of its demand, however this is not enough, since, the forecast is
correlated with the management in the points of sale, the correct planning of the
system requirements Logistics to meet the demand, excellence in customer
service, among other actions that should not be overlooked. This forecast not only
takes into account historical behavior but possible future scenarios and possible
effects of the instruments developed by the Company to influence demand and
the market.

The proposed demand forecasting method is a quantitative procedure called the

"Mobile Stock Method", which is used to analyze the products (data) in the form of
points within an inventory creating series of averages, in this way , The moving
averages will be a listing of numbers which each represent the average of a
subset of products (data) of the original data. This type of method is generally
used when demand is stable, softens short-term fluctuations, and long-term
trends or cycles predominate.

On the other hand, due to the need to maintain optimum levels of inventories, we
must define a model that best fits the needs of the Company, for this, we must
differentiate the types of inventory with which we count: raw material, products in
Process, finished products and raw material inventories and supplies.

The possible scenarios and processes that affect inventories are:

Taking into account the previous graph and according to its interpretation, it is to
be noted that maintaining an optimal level of inventory represents for the
company one of the largest investments because it represents the materials
owned by the Company and the satisfaction of offering a good service to
customers

For YUGORFIT, it is considered that the Inventory Management Model to be used

is the "Security Inventory"

The security inventory is the extra level of stock that they have in the inventory
and / or warehouse that the Companies use to face an unexpected increase in
demand or some unforeseen situation. This type of inventory is generated to
reduce the uncertainty gap between supply and demand.

For YUGORFIT it is very important to have a security inventory since, in this way,
it can satisfy the demand of its customers, in the presence of delays of the
supplier, unexpected growth of the demand of a product, damages in the
machines, among others, is more , The security inventories allow to avoid this
type of delays in the Company.
OBJECTIVES OF INVENTORY MANAGEMENT

Minimizing the investment: The objective of the Inventory Management is to

maintain a low level of inventories, but there is a high turnover with the materials,
which implies that we are constantly receiving orders for these materials to supply
our warehouses. , With this method, it is possible to minimize these levels to the
maximum, which leads to lower investments and to satisfy the needs of our
clients.

To face the Demand: Associated to the minimization of the inventories, it is the

responsibility of the Warehouses to have their security inventory in order to avoid
the sale the loss for not complying with the orders of our clients. In these
conditions, it is necessary for the company to determine an appropriate level of
inventories by maintaining a balance between the cost incurred due to the
missing and the cost of maintaining a certain level of inventories.

Physical Inventory Management

Because most of the inputs are organic materials, proper use of these materials is
necessary in order to avoid expirations and other aspects of the useful life of the
material.

6.Set inventory policies (s) to sort, organize, schedule and transport

according to your project deformation.

The axis on which the management of inventories is based will be centered in the
principles with orientation towards the client, but also towards the company as a
component of the social object

 Meet the needs and exceed the expectations of customers, offering

products of quality, opportunity and competitive prices.

 Induce the decision making in the area of purchases, under criteria of

optimization of resources of the company.

 Create and operate work systems that guide efforts to continuous

improvement, minimization of inventories and compliance with the
demand in the management of inventories.

 Promote actions aimed at the joint work between warehouses and

the Purchasing Department, which are responsible for the continuity
in the manufacturing processes.

 Effectively manage resources, generating profits and cash flow.

  Foster and recognize those values of creativity, efficiency and
effectiveness in the management of inventories.

 Purchasing Department, which are responsible for the continuity in

the manufacturing processes.

ORGANIZATION POLICY

THE MANAGEMENT OF AN ORGANIZED INVENTORY: Each reference is

assigned a specific location in store, and each location is assigned specific
references

• CHARACTERISTICS

 facilitates manual management of the warehouse

 Pre-allocation of space (regardless of stock)

he object that the company must have in its process of receipt of goods is
automation as much as possible to eliminate or minimize red tape and human
interventions that involve reprocessing or incoming raw material, supplies or
spare parts that do not conform

ZONES OF A WAREHOUSE

Reception: area where the activities of the reception process are carried out.

Storage, reservation or stock: destination areas of stored products. Of absolute

adaptation to the hosted goods, it includes specific zones of stock for special
goods, returns, etc.

Preparation of orders or picking: area where the goods are located after passing
through the storage area, to be prepared for shipping.
Exit, verification or consolidation: where the issuance and final inspection of the
goods takes place.

Step, maneuver: areas for the passage of people and machines. Designed also to
allow the total maneuverability of the machines. Offices: area destined to the
location of jobs auxiliary to the own warehouse operations.

Offices: area destined to the location of jobs auxiliary to the own warehouse
operations.

Although the main function of YUGORFIT Inventory Management is the efficiency

and effectiveness in the physical flow, its achievement is at the expense of the
flow of information, this is a transversal axis of the processes of logistic
management, and the management of warehouses Are the exception. It should
be your optimization, therefore, first-order goal in Warehouse Management. Its
scope extends to
All processes of Planning and organization, reception, warehouse and movement
- and is developed parallel to them by three way
 Information for management.
 Identification of locations.
 Identification and traceability of goods.

Programming and Planning Policy

it corresponds to the strategic and tactical activities that YUGORFIT uses, having
to provide a solution to the needs of resources and locations in line with the
general policies or objectives of the company, from here we will name the
location, technical and human resources necessary and The planning of the three
operating processes Reception, warehouse and movement.

For the design of the distribution and storage network firstly, having already
identified the need for a distribution network to respond to changes in demand
using an optimal combination of facilities, transport modes and strategies, ie to
create warehouses and warehouses. Distribution centers, so as to manage the
flow of products from one source to the customer.

 Greater degree of control.

 Flexibility.
 Less expensive in the long term.
 Optimization of human resources.
 Tax and intangible benefits.

Movement

It is the operative sub-process of moving the materials and / or products from

one area to another of the same warehouse or from the reception area to the
storage location. The inflows and outflows of the goods warehouse are: First In -
First Out (FIFO): First in first in

TRANSPORTATION POLICIES

YUGORFIT optimizes the distribution resource in terms of storage and

transportation of the products to the end customer in order to achieve efficiency
in all processes involved.

1. The modality of transport to be used and its conditions, will be defined by the
direction of logistics operations.

2. When contracting with the transport company must stipulate that it must
assume the risks and costs inherent in the transit, loading or unloading of
products or materials; Including novelties in damages and / or total or partial
losses.
3. All shipments of products must be made through vehicles contracted by
registered companies, legally constituted and authorized, which must submit the
required documents updated and codified by the logistics operations
management

4. Each Product will leave the distribution center or agencies with the respective
documents, signed by the Head of Distribution Center, Dispatch Coordinator,
Operations Coordinator, Head of Warehouse or by whom it designates,
recording the exit in the system

5. All sales orders must be verified by the Department of Credits and Collections,
in order to authorize their clearance.

6. In case of theft or accident during the execution of the transit of vehicles

loaded by company, proceed with the steps described in Procedure, 3 "Handling
of Accident and Accident" OF THE OPERATIONS MANUAL.

7. Perform a prognostic simulation of the demand for the products or

services to be executed through the inventories.

Predictive simulation of demand for products from the years 2012 to 2016

Year 2012 Year 2013 Year 2014 Year 2015 Year 2016
Months Yogurt sales Yogurt sales Yogurt sales Yogurt sales Yogurt sales
by units by units by units by units by units

January 9.186 8000 9.186 14200 14090

February 5000 5300 5200 4500 5600
March 4000 3890 4000 5300 6800
April 3000 3200 3000 3200 4500
May 3800 3000 4500 4800 6700
June 7000 7200 8000 8500 8900
July 13000 12400 13700 13000 13500
August 4570 4500 5000 5100 6700
September 5469 6000 7000 7390 8793
October 8700 7800 6900 7200 7970
November 5009 4500 4560 5890 7583
December 6789 7000 6899 7888 9812
Graph

1.2

1
Year 2012 Yogurt sales by
units
0.8 Year 2013 Yogurt sales by
units
Year 2014 Yogurt sales by
0.6
units
Year 2015 Yogurt sales by
0.4 units
Year 2016 Yogurt sales by
units
0.2

Year 2012 Year 2013 Year 2014 Year 2015 Year 2016
Months Yogurt sales Yogurt sales Yogurt sales Yogurt sales Yogurt sales
by units by units by units by units by units
Total 66346.186 72790 68768.186 86968 100948
8.CONCLUCION

Inventories represent goods destined for sales in the normal course of business.
For greater breadth of functions and services of inventories depends on the
nature and type of company, the importance of materials and equipment
expenses and organization of the company.
Inventory management focuses on four basic aspects; As they are: the number
of units that must be produced at a given moment, when the inventory should
take place, which article deserves special attention, and we can protect
ourselves from changes in the costs of inventory items. In this way we can point
out that inventory management consists of providing the inventories that are
required to keep the operation at the lowest cost possible.
Inventory control is performed for the purpose of developing sales or budget
forecasts, in order to determine the costs of inventories, purchases or
procurement, reception, storage, production, shipment and accounting.
Inventories are classified according to the characteristics of the company, and
one of the ways to classify them is: Inventory of Raw Material, Processed
Production, Finished Products, Materials and Supplies.
As for inventory costs; All the costs that are related to the inventory must be
identified.