INVENTORY THEORY
SITUATION OF INVENTORY MANAGEMENT AT PHARUSA VIETNAM
VIETNAM JOINT STOCK COMPANY 2.1 Overview of Vietnam Pharusa Joint Stock Company
2.1.1 About Pharusa Vietnam Joint Stock Company
Company Name: VietNam Pharusa Join Stock Company
Address: Room 808 Phap Van Urban Area - Tu Hiep, Hoang Liet Ward, Hoang Mai District, Hanoi, Vietnam.
Charter capital: 5,000,000,000 VND (data in 2013)
Legal Representative: Do Dinh Huy Managing Director: Do Dinh Huy
The history of company's foundation:
Founded in early 2009, Vietnam Pharusa Joint Stock Company has emerged as a leading player in the trading and distribution of functional food products.
In its early establishment, the company started with just over 20 employees and operated from a modest 45 m² rented office in Thanh Tri district, which has since relocated to Hoang Liet ward in Hoang Mai district.
From 2009 to 2011, the company established partnerships with several pharmaceutical manufacturers, including FUCOIDAN Vietnam Joint Stock Company, TCPharma, HADIPHAR, DANAPHAR, VNPOFOOD, OPC Pharmaceutical Joint Stock Company, and Golden Health Company.
Since its inception, Vietnam Pharusa Joint Stock Company has prioritized marketing through diverse promotional strategies, significantly enhancing the visibility of its brand and product lines This approach has successfully reached consumers in both urban and rural areas nationwide.
2.2.The situation of management of inventory at the vietnam joint stock company
2.2.1.The method of accounting for inventory at the vietnam joint stock company
In business production, companies must choose between two inventory accounting methods for the fiscal year: the perpetual inventory method or the periodic inventory method This selection should align with the enterprise's operational activities and be consistent with the fiscal year requirements.
Two methods of accounting for inventory of enterprises:
- Perpetual inventory method : used in storage of warehouses, warehousing cards, records of materials and goods for accounting of fluctuations of inventory The content of the method as follows:
+ Reflecting the situation of import, export, beginning of the period and end of the goods;
+ The formula for calculating total inventory value at the end of period:
Total inventory value = Inventory value + Inventory value - Value of inventory of ending inventory in the period in the period
The periodic inventory method involves utilizing documents to track inventory, where at the end of the accounting period, vouchers for imported goods are collected from the warehouse This process includes examining and categorizing documents by product type and recording the accounting values for each item.
+ only reflects the beginning and end of the period, not reflecting input - output in the period; + formula:
Total inventory = Value of inventory + Value of inventory-Ending inventory value value in period beginning for the period
At the end of the inventory period, the enterprise determines the inventory of inventory, which determines the value of goods in the period.
Vietnam joint stock company pharusa accounting for inventory by regular declaration.
2.2.2.Classification of inventory of vietnamese joint stock companies
The inventory of the Vietnamese joint stock company is categorized based on product usage criteria, employing the ABC classification method This approach divides the inventory into three primary groups, as illustrated in the accompanying image.
Diagram 2.3 ABC Classification of inventory
Protect the digestive system Skin & Hair Care Vitamin &
2.2.3 Characteristics of inventory of Vietnam Pharusa Joint Stock Company
Inventories of Vietnam Pharusa Joint Stock Company are medicines and functional foods The general characteristics of this product are:
- Store in a cool, dry environment, away from direct light;
- Use time from 6 months to 2 years depending on the type of product;
- Products may lose quality or change properties if the packaging is torn or opened during transportation, loading and unloading, etc.
- The company may be liable if users of the company's products have health problems related to drug reactions;
- If a product is found to have a damaged or reduced quality part, the entire product unit(box, blister, ) will be discarded.
2.2.4 Inventory management process at Vietnam Pharusa Joint Stock Company
The inventory management process at Vietnam Pharusa Joint Stock Company begins with the delivery of goods from suppliers to the warehouse and continues until the products are sold This process consists of three key sub-processes that ensure efficient management of inventory.
- Process of warehousing: when the company imports goods from drug manufacturers that the company cooperates with, the pre-sales warehousing process is as follows:
Diagram 2.4 The process of warehousing Vietnam Pharusa Joint Stock Company
Purchasing department (1) Make a test record
(4)Transfer the goods receipt note to the accountant
The Accountant (5) Complete unit price,,
(3) Enter the actual quantity and the date entered into the goods received note.
The specifications, designs, and quality of the goods listed on the voucher must accurately reflect the actual products In cases of significant discrepancies, the Storekeeper is required to document the differences and has the authority to refuse the acceptance of the goods.
- Depot process: when the company ships goods from the warehouse to sell to customers,the process of discharging the warehouse is as follows:
Diagram 2.5 The process of stock out Vietnam Pharusa Joint Stock Company
(2) Transfer the goods delivery note (3) Stock out
Transfer the goods delivery note
The storekeeper verifies the validity of export documents, including the export order and export note, ensuring they are signed by the Director or an authorized individual Additionally, the accountant and consignee check that the specifications and samples of the goods match the export slip before signing off and releasing the items from the warehouse.
At the same time, based on the Import-Export slip, the storekeeper must immediately record it in the warehouse card for monitoring and reporting to the accounting.
-Inventory inventory and adjustment process: monthly, the company conducts inventory and adjustment of goods in the warehouse That process goes like this:
+ List the goods in stock at the time of inventory;
+ Enter actual data after the inventory is completed;
To ensure accurate accounting records, prepare minutes and vouchers that reflect actual data In cases of discrepancies, such as excess or shortage due to human error, the inventory personnel must document the issue and seek approval from the Director or the direct manager.
2.2.5 Advantages and limitations in inventory management of Vietnam Pharusa
- Enterprise managers focus on inventory management;
Effective inventory management within an enterprise involves assigning specific responsibilities to individuals, ensuring that each person oversees a distinct yet interconnected task This structured approach facilitates task delegation and enhances accountability in the event of any issues arising.
- The individuals in charge of warehouse management have a sense of responsibility and work productively;
- The leader of the warehouse management team always receives the comments of employees to make the management more effective.
- Due to the limited infrastructure and techniques at the enterprise's warehouse, a few goods in the process of loading and unloading, storage, and packaging are torn, denatured, etc.
- The professional level and ability to assess the quality of inventory of employees are still at an average level, leading to errors in a few inventory reports.
Determining the optimal order quantity is crucial to avoid unnecessary costs When order quantities are too large relative to inventory levels, it can lead to delayed delivery times or even order cancellations due to insufficient supply capacity Conversely, ordering too little can increase the risk of product deterioration, quality reduction, and shortages, as well as potential losses during loading, unloading, and storage.
Many enterprises struggle to proactively anticipate customer orders, which leaves them in a reactive state and hinders their ability to swiftly adapt to fluctuations in market demand.
Goods experience invisible wear and tear, leading to costs associated with obsolete products that cannot be sold at their original price due to unsold inventory and the introduction of superior new models As a result, businesses face a critical decision: either sell at a reduced price to recoup capital or discard the outdated items.
LEAN SIX SIGMA
The company is suffering from two types of waste:
Inefficient transportation management arises from the failure to establish optimal order quantities, leading to unnecessary costs and a reactive business approach This unpredictability in customer orders results in significant transportation waste and highlights the need for better organization throughout the transportation stages.
Inventory management is significantly impacted by shipping waste, leading to potential wear and tear on goods when optimal order quantities are not established As a result, obsolete products lose their resale value, forcing businesses to sell them at reduced prices to recover capital or to clear out stock.
In the period 2011-2013, the efficiency of inventory management at Vietnam Pharusa Joint Stock Company is shown through the following indicators:
Vietnam Pharusa Joint Stock Company focuses on meeting customer needs by wholesaling large quantities of products to pharmacies through business contracts, while also offering retail options for customers purchasing directly from the Company's store The following data reflects the volume of bulk orders placed by pharmacies with the Company.
Over the past three years, the average rate of feasible orders that fully satisfy customer needs stands at 82.30% This indicates that 17.70% of orders remain unfulfilled, reflecting unmet customer demands Between 2011 and 2013, there was a slight decline in the percentage of viable orders, as the increase in uncompleted orders outpaced the growth in total orders It is crucial for the company to address these challenges to enhance customer satisfaction.
-Criteria to evaluate investment level for inventory: is determined through 2 parameters, which are the ratio of the value of inventory assets and the proportion of inventory in current assets.
Value of inventory 1.211.551.483 1.511.496.918 2.118.378.995 Tota Current assets 6.143.671.536 5.383.534.362 4.810.377.139 total assets 6.348.203.197 5.548.101.810 4.929.656.892
Proportion of inventory in current assets 19,72% 28,08% 44,04%
In the period 2011-2013, the two indices under consideration have a rapid downward trend The ratio of inventory asset value from 42.97% (in 2011) decreased by 15.73% in
Between 2012 and 2013, the company experienced an 8.16% decrease in inventory, contributing to a total reduction of 24.32% in inventory as a proportion of fixed assets This trend is attributed to the company's effective strategy of rapidly reducing inventory levels, which led to increased inventory turnover and an overall rise in total current assets and total asset value during each accounting period.
- Criteria for assessing the accuracy of inventory reports: determined through two parameters, the number of inaccurate reports and the total number of reports in the year.
Between 2011 and 2013, inventory status reports at enterprises lacked accuracy, highlighting the need for improved accountability among warehouse staff To enhance decision-making for managers, it is crucial to boost the professional knowledge of employees and reduce the occurrence of erroneous reports.
Sales are crucial for generating revenue and adding value to a business, yet failing to optimize annual goods volume leads to significant transportation cost waste Despite incurring high shipping expenses, the rate of incomplete orders remains alarmingly high at 17.7%.
Why is transport waste so high? Because businesses still have to place orders without a plan a lot of times.
Why do business still have to order unplanned so many times? Because the optimal quantity has not been determined
Why hasn't the optimal quantity been determined yet? Because the business does not have a plan in advance about the quantity of goods to be imported
Why do businesses not have a plan in advance about the quantity of goods to be warehoused? Because economic order quantity optimization methods have not been applied yet
Many managers continue to rely on traditional inventory management methods, leading to issues such as stockouts and reactive reordering This approach often results in immediate imports to fulfill unexpected orders, without any prior planning or consideration of optimal quantities.
Implementing open training courses for employees on warehouse management is essential for enhancing their professional skills and responsiveness to various challenges These courses equip staff to effectively handle issues related to inventory, such as equipment malfunctions, natural disasters affecting the warehouse, and unauthorized access by individuals with malicious intent By focusing on these critical areas, the training helps prevent theft, damage to goods, and the introduction of substandard products, ultimately safeguarding the company's reputation.
- Apply available economic models such as EOQ model to determine the optimal order quantity to reduce unnecessary costs such as inventory costs, ordering costs.
Applying inventory models to calculate the optimal order quantity of Vietnam Pharusa Joint Stock Company in 2011, 2012, 2013
When applying these models, managers accept several assumptions:
- One-year demand is stable, predictable;
- Delivery time does not change, must be determined in advance;
- All orders are received by the enterprise at the same time;
To accurately determine the optimal order quantity, we present data for a selected product from our company's distribution range, with detailed product specifications outlined in the table below.
Table Product information Golden Health Royal Jelly
Product's name Golden Health Royal Jelly
Product line Skin and hair care
0,25 m/unit 0,26 m/unit 0,23 m/unit stock position (V)
Storage cost of 1 unit 0,0675 m/unit 0,0754 m/unit 0,0690 m/unit reserve (H)
Numer of production days in the year 340 days 340 days 340 days
15 days 20 days 20 days until you receive the goods
- Enterprises do not make trade discounts for customers.
From the data of Table 3.1, we draw the optimal order quantity of 3 years
The total minimum inventory management costs of Golden Health royal jelly in 3 years are respectively:
The inventory model offers a significant advantage by simplifying the determination of the optimal order quantity, which in turn facilitates the calculation of the minimum total cost for inventory management This efficiency helps companies maintain stable operations and avoid disruptions in business activities Additionally, the Economic Order Quantity (EOQ) model incorporates reorder timing, ensuring that new stock arrives promptly.
Managing inventory effectively is crucial for minimizing risks, as larger quantities can lead to increased exposure Timely and accurate export of goods is a primary objective for businesses, including Vietnam Pharusa Joint Stock Company Consequently, implementing a robust inventory control plan is essential for achieving this goal.
+ Quantity of goods needs to be applied economic models such as EOQ model to determine the optimal order quantity
+ Constantly having to update and check the actual inventory situation
+ In cases of sudden spikes in orders, the optimal order quantity may deviate from the actual situation Need to be flexible to find solutions
+ Improved accuracy in inventory reports Thereby increasing the accuracy of business data, increasing efficiency for EOQ model.
FISHBONE DIAGRAM (5M+E)
1)Why the staff is inexperienced?
Because of the lack of team-to-team interaction, the management
3) why is there a lack of interaction between the team and the team, the management Because the management is incompetent
4) why is the management incompetent?
Because they are not properly trained
Because the company focuses on promoting the product
Should focus on balancing the two, training employees, especially talented people to help the company operate better
Measurement: products are in stock
1) Why is the product in stock?
Because there is no notepad, timekeeping
2) Why is there no notepad, timekeeping?
Because of not regularly monitoring the progress
3) Why not regularly monitor progress?
Because there is no clear goal
4) Why not have a clear goal?
Because I don't know how to define and plan
5) Why do not know how to define, plan?
Because of the lack of skills to implement ideas
Specific monitoring in the process of working and management Equip employees with necessary knowledge and skills
1) Why is the device damaged?
2) Why does it happen so often?
Because it is not equipped with new and modern machinery
Test intends to sign and speed up the process of equipping a new machine, carefully instructing before using to avoid the situation of not knowing that the device is damaged.
1) Why is the raw material redundant?
Because customer needs are not met
2) Why not meet customer needs?
Because I don't know how to calculate the rationality in exporting and importing goods to supply goods
3) Why do not know how to calculate the reasonableness in exporting and importing goods to supply goods?
Because the employee got the wrong parameters
4) Why do employees get the wrong parameters?
5) Why are you tired from working overtime?
Because of not allocating resources properly
Optimal resource allocation combined with technology for more efficient storage and computation
Method: wrong way of operating
1) Why the wrong way to operate?
Due to lack of knowledge
3) Why are they not focused?
Because they have an unenthusiastic working attitude
4) Why do they have an unenthusiastic working attitude?
Because they only care about doing their best, not focusing on productivity and
5) Why do they only care about doing everything assigned, not focusing on productivity and efficiency?
Because I'm lazy to create and apply knowledge
Strictly control, improve methods to make them more excited and work better
CHECKLIST FOR INVENTORY AUDIT
The auditor will develop an inventory audit program for ABC Company by first analyzing the internal control system and conducting preliminary analytical procedures for inventory Key steps in this process include assessing risk factors, determining materiality, and outlining specific audit procedures tailored to the company's inventory practices.
• Determine the audit objective for the inventory item:
Existence (E) Inventories are reflected on the balance sheet that actually exist in warehouses, stores, manufacturing sites, in transit or for sale at the balance sheet date.
Completeness (U) Inventory import and export transactions recorded in the period are real. Accuracy (A) Actual transactions of import and export of inventories arising in the period are recorded in full.
Evaluation (V) The reported value of inventory includes all goods in stock at the warehouse, stores, stalls, purchases in transit and goods in transit at the time of sale.
Accurate ownership of inventory ensures that all items are properly identified, measured, priced, and accrued Additionally, the presentation of inventory value must be calculated using a consistent accounting method, ensuring that the inventory figures on financial statements align with the accounting records.
1 Is inventory inventory done in accordance with regulations? Yes
2 Have you tried taking inventory as collateral for a loan? No
3 Does the security agency sign the receipts and delivery invoices?
4 Is the warehouse location full? Yes
5 Is the inventory card system maintained? Yes
6 Does the storekeeper receive formal training? No
7 Are slow-moving, damaged, and obsolete inventory items sorted and set aside?
8 Has the customer determined the provision for devaluation of inventory?
9 Are the stock receipts and receipts recorded in the accounting books in a timely manner?
10 Is inventory valuation consistent with previous years? Yes
11 Is there detailed costing for finished goods in stock?
CHAPTER 6: INTERNET OF THINGS Open mouth Bagging automation – OMBA The palletizing robot system is used for all types and sizes of bags Combined with the traditional bagging system or the valve bag weighing systems suitable for bags: 5-50 kg, with flexible sensitivity, high accuracy.
The automated system enhances operational efficiency by doubling productivity compared to traditional labor, seamlessly integrating with your current bagging lines and utilizing existing conveyors and equipment Additionally, cost-effective bags are available to further optimize your operations.
+ Synchronize with the speed of the load state.
+ Structure mounted on the robot arm.
Compatible with all closed dual systems.
Compact design optimizes floor space.
+ Productivity up to 18 bags per minute.
+ It is possible to integrate automatic sewing of the mouth of the bag.
+ 7 inch control screen of Mitsubishi, Siemens, AB PLC.
+ Yaskawa robot, KUKA 6 steps & PLC control.
+ The bag picking arm is controlled by servo.
+ Holder clamp mechanism on robot arm.
The solution offered includes options for customers as follows:
Giải pháp đưa ra gồm các lựa chọn cho khách hàng như sau:
Bao 1 lớp Bao 2 lớp Ứng dụng
Loại bao: ã Bao dệt PP 1 lớp cú trỏng keo ã Bao giấy ã Bao HDPE Kớch cỡ bao:
10 – 50kg Cạnh bao: Có hoặc không có xếp cạnh
Bao bì hiện nay có nhiều loại, bao gồm bao dệt PP với lớp keo và lớp PE bên trong, bao giấy với lớp PE bên trong, và bao HDPE cũng có lớp PE bên trong Kích cỡ của các loại bao này thường dao động từ 10 đến 50kg, đáp ứng nhu cầu đa dạng của người tiêu dùng.
Có hoặc không có xếp cạnh Hàn lớp PE: Không
Cánh tay robot 6 trục Tốc độ: 6 – 8bpm (bao/phút) Cấp bao tự động Điện áp:
380V – 50Hz Công suất: 8KW Áp suất: 6bar (~87PSI/ ~6MPa) Lưu lượng khí:
550L/min Truyền thông: Phù hợp với chuẩn công nghiệp Giao diện vận hành thân thiện Tích hợp với hệ thống SCADA
Cánh tay robot 6 trục có tốc độ hoạt động từ 6 đến 8 bao/phút và cấp bao tự động, sử dụng điện áp 380V – 50Hz với công suất 10KW Thiết bị hoạt động với áp suất 6bar (khoảng 87PSI/6MPa) và lưu lượng khí đạt 550L/phút Cánh tay robot này tuân thủ các tiêu chuẩn công nghiệp, sở hữu giao diện vận hành thân thiện và có khả năng tích hợp với hệ thống SCADA.
Hệ cân Máy may Kiểu may Vật liệu tiếp xúc trực tiếp với nguyên liệu là inox 304
(SUS304) In ngày tháng In mã code Kiểm tra kim loại Kiểm tra trọng lượng
Hệ cân máy may sử dụng vật liệu inox 304 (SUS304) cho các bộ phận tiếp xúc trực tiếp với nguyên liệu Thiết bị này cho phép in ngày tháng và mã code, đồng thời thực hiện kiểm tra kim loại và kiểm tra trọng lượng một cách chính xác.
Bao 1 lớp Bao 2 lớp Ứng dụng Loại bao: ã Bao dệt PP 1 lớp cú trỏng keo ã Bao giấy ã Bao
HDPE Kích cỡ bao: 10 – 50kg Cạnh bao: Có hoặc không có xếp cạnh
Loại bao: ã Bao dệt PP cú trỏng keo và lớp PE bờn trong ã Bao giấy cú lớp
PE bờn trong ã Bao HDPE cú lớp PE bờn trong Kớch cỡ bao: 10 – 50kg Cạnh bao: Có hoặc không có xếp cạnh Hàn lớp PE: Có hoặc không
Cánh tay robot 6 trục tự do có tốc độ hoạt động từ 8 đến 12 bao/phút, được trang bị hệ thống cấp bao tự động Thiết bị hoạt động với điện áp 380V – 50Hz và công suất 12KW, cùng với áp suất 6bar (~ 87PSI/ ~ 6MPa) và lưu lượng khí đạt 550L/phút Cánh tay robot này tương thích với chuẩn công nghiệp, có giao diện vận hành thân thiện và được tích hợp với hệ thống SCADA.
Cánh tay robot 6 trục tự do hoạt động với tốc độ 8-12 bpm, cung cấp cấp bao tự động và sử dụng điện áp 380V – 50Hz với công suất 12KW Được thiết kế với áp suất 6bar (~87PSI/~6MPa) và lưu lượng khí đạt 550L/phút, thiết bị này tương thích với chuẩn công nghiệp và có giao diện vận hành thân thiện, đồng thời tích hợp dễ dàng với hệ thống SCADA.
Tùy chọn Hệ cân Máy may Kiểu may Vật liệu tiếp xúc trực tiếp với nguyên liệu là inox
Inox 304 (SUS304) được sử dụng trong nhiều ứng dụng công nghiệp, bao gồm in ngày tháng và mã code Để đảm bảo chất lượng, việc kiểm tra kim loại và trọng lượng là cần thiết Hệ cân và máy may cũng đóng vai trò quan trọng trong quy trình sản xuất Đặc biệt, vật liệu tiếp xúc trực tiếp với nguyên liệu phải là inox 304 để đảm bảo an toàn và độ bền.
(SUS304) In ngày tháng In mã code Kiểm tra kim loại Kiểm tra trọng lượng
A Robotic Palletizer is a specialized robot designed to automate the stacking of bag-type products, such as PP bags, paper bags, cartons, and cargo boxes, onto pallets, eliminating the need for manual labor.
The Robotic Palletizer system comprises essential components tailored to specific applications, including End Of Arm Tooling (EOAT) on the robot arm, a connecting conveyor, a check weigher, a control cabinet, and safety fences Together, these elements create a comprehensive Robotic Palletizing system that meets various operational needs in workshops and factories.
2 EOAT (End of Arm Tool): the gripper mounted on the robot
3 Base for robot: Bracket for robot
5 Pallet Dispenser: Automatic pallet feeding
6 Station Conveyor: Pickup Station Conveyor
7 Full Load Conveyor: Palletizing Conveyor
8 Discharge Conveyor: Conveyor to pallet
10 Safety Light Curtain: Safety Sensor
In addition, the Robot Palletizer system can further integrate:
+ Check Weigher weighing system, check product weight, and automatically eliminate products that fail.
+ Wrapper machine to wrap PE film for pallet trees.
The compact design of the Robot Palletizer ensures minimal space usage, making it ideal for various layouts to meet diverse customer requirements Hao Phuong has successfully installed numerous Palletizer robot projects, demonstrating versatility in configuration With a minimum installation area of 5766x2362mm, the Robot Palletizer system can be fully automated, enhancing efficiency in operations.
Features of the robot that stacks bags on pallets
The robots can lift objects up to hundreds of kilograms, their operating frequency is over
1000 times/hour with a repeat accuracy of 0.06 mm The palletizing robot can work in all different environmental conditions.
Configuration types of palletizing systems
Robotic Palletizer Systems come in two configurations: semi-automatic and fully automatic.
Single robotic systems typically operate with one or two production lines, making them ideal for factories with lower capacities or those with production lines in different locations In a semi-automatic setup, the palletizing process requires manual placement at the robot's working position, whereas in an automatic system, pallets are delivered to each robot working position entirely on their own.
Video: https://www.youtube.com/watch? time_continue$&v_Gm9ADy89o&feature=emb_title
Benefits of applying Robot system to automatic production
2 Reduce the task of managing people in the production process
3 Improve product quality and consistency.
4 Connecting all production stages to enterprise management software (ERP)
The company's outdated facilities and equipment hinder operational efficiency; however, implementing automated machinery in the warehouse processes can effectively resolve inventory issues and enhance overall productivity.