Tools  Inventory Control are-

 1. Barcode data collection

The perpetual inventory system is highly dependent on timely and accurate reporting.

Manual reporting can be plagued by delays, errors, missing transactions, and undue burden on the workforce to collect and enter the data. Automated data collection, most often through barcode scans, removes much of the reporting burden while greatly improving accuracy and timeliness of transactions.

2. Cycle counting

Inventory accuracy is very important to the effective planning and control of inventory. Sadly, most inventory tracking systems are woefully inaccurate without an active and disciplined cycle counting system in place.

Cycle counting replaces the cumbersome and error-prone periodic (usually annual) physical inventory count with a regular program of counting selected items such that more important items are counted more often that less important ones.

The magic of cycle counting is that it provides a structure for identifying and eliminating the source of errors to improve accuracy in a sustainable way.

3. ABC analysis

Cycle counting is usually set up using ABC analysis to identify the more important and less important items mentioned above.

The most common ABC analysis (also called Pareto analysis) method is to rank all inventory items according to the total value of each on an annual basis (annual “usage” or movement times unit cost).

Typically, the top 20 percent of items represent 80 percent of the annual value through the warehouse (80/20 rule). The next 30 percent (B items) account for 15 percent of the value and the remaining 50 percent, the C items, total five percent of annual value.

In addition to setting cycle counting frequency, ABC classifications should drive item location in the warehouse, lot sizing and safety stock rules, and other management parameters to put your focus on the items that matter, where you can get the most return for your investment.

4. Integrated planning and execution

The primary focus of ERP is to improve customer service (meeting demand) while optimising resources including inventory (and reducing costs).

While the inventory system provides critical information for the planning and execution systems within ERP, these functions return the favour by managing the use and replenishment