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when you are ready, create an Inventory Program that describes how you will name, count, audit and record inventory. Writing an Inventory Program helps ensure you are prepared to manage all of the inventory that will be stored in your facility. Your Inventory Program should be 500-1,000 words and must include the following information in an organized format:

  • Control methods for tracking and managing stock
  • What type of inventory technique will you use to manage inventory and what are your reasons for choosing it?
  • How will you track received inventory?
  • How will you track products that are ready to be shipped to retailers?
  • Naming convention
  • Rooms: Provide unique location names for each room or zone in your distribution center in a bulleted list. Include abbreviations for each room or zone. (for example: storage=zone S, receiving=zone R)
  • Sections: Choose one large area or room (such as receiving) and explain how you will divide it into sections. Include a bulleted list for this area with the names of the sections you will divide it into. Be sure the section names are listed in ascending alphabetical order.
  • Record keeping
  • Explain your system for performing quality control on your inventory, and include answers to the following questions:
  • Why is it important to count inventory?
  • What inventory, specifically, will you count?
  • Where are you going to count inventory?
  • When will you count inventory?
  • Note: Your system for record keeping should directly reflect your inventory technique.
  • Inspection
  • Describe your process for inspection, answering the following questions:
  • What has to be done to all inventory that arrives at the distribution center from suppliers?
  • What has to be done to all inventory before it leaves the distribution center and is shipped to customers?

Note: You may need to look back to the Distribution Center Layout from Project 2, as well as your proposed changes, to inform some of the components of your Inventory Program.

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