Inventory Management

Rootstock Manufacturing Inventory Control supports a number of business processes relating to the maintenance of item inventories, inventory valuation and planning and setting of item policies such as lead time and MRP planning. Purchase Requisition Maintenance for Direct Material Items is also supported in this module as is a Supply Demand Review (an output of MRP) which illustrates the supply and demand picture with projected on hand balances helpful to a material planner for managing the inventory.

While production items are initially entered in the Production Engineering application, for those that are entered in an active status, the Rootstock Item Master maintenance function will automatically establish Inventory part policies and attributes such as lead times and MRP planning polices and Safety Stock policies as determined by the Inventory Commodity code assigned during this item master maintenance.


For larger version, please click on image.

It is important to understand the structure of the inventory information to appreciate all of the tracking of costs and quantities that are maintained. All inventories (quantities) are maintained by Item and Location within a Division and Site. The Location is a combination of both a Location ID (typically a physical location with a plant such as Stores or Floor Stock) and a Location Number (typically a ‘row-bin-aisle’). The Location ID’s have their own master file and are identified as ‘on hand nettable’ or ‘on hand non nettable’ – and MRP will only review inventory that is located in On Hand Nettable locations.

There are additional attributes ‘assigned’ to inventories and they are as follows:

  • Lot Controlled – If an item is lot controlled then the Lot Number is set and noted in the ‘Location Section’ field of the Inventory Location record
  • Serial Controlled – If an item is to be ‘serial tracked’, which means that any inventory transaction must identify the specific serial number, then this Serial Number is set in the ‘Location Section’ field of the Inventory Location record. If the Item is also Lot Controlled, then this can be so noted in a ‘comments’ field within the Inventory Location record.
  • Backflush Location – If an item is a ‘backflush’ candidate, then in the “Location Section” field of the Inventory Location the word ‘Backflush’ is set to denote such a location type. Lot and Serial Controlled items cannot be ‘back flushed’.

In a project control environment, it is necessary to also maintain the inventories by project. Therefore, an additional piece of information on the Item Location Record is the project.

While the user will maintain the inventories at a Division, Site, Item, Project (if Project Control environment), Location ID, Location Number, Serial (if a Serial Controlled item), Lot (if a Lot Controlled item), Location Section (for Backflush locations), the system also has additional records containing the quantities (and dollars) by Division-Site-Item and by Division-Site-Item-Project (if Project Control environment).

There are a number of transactions that are available to the user to maintain inventories. Some of the inventory transactions available include:

  • Inventory Additions
  • Inventory Adjustments
  • Inventory Scrap
  • Unplanned Issues
  • Unplanned Receipts
  • Location to Location Movements
  • Division to Division Movements
  • A ‘project to project’ transfer (in a project control environment)
  • A dollar adjustment (in a weighted average cost environment)

In a weighted average cost system, the user will need to note the unit costs on an inventory addition while in a standard cost system the costs are not on specified on the transaction by the user.

As noted earlier there is a Supply Demand Review (also termed Requirements Analysis) that is available for each item. This Requirements Analysis presents the supplies (work orders, purchase requisitions, purchase orders) and demands (customer orders and forecasts, work order demands, subcontract requisition and subcontract purchase order demands) in due date sequence with an associated projected on-hand balance. The planner can review this supply and demand picture on line and it is helpful in managing reschedules and review of shortage conditions. Purchase requisitions are also maintained through Inventory Control. The material planner can add requisitions within this module and then once the requisitions are approved they can be converted to Purchase Orders within this module. MRP generates planned requisitions. Planned requisitions must be changed to firm status prior to their being approved.

Another benefit provided by the Inventory Control module is the comprehensive Audit Trail Inquiry. An audit trail is generated for every material movement and labor transaction. The Audit Trail Inquiry can be used to track the historical view of an item’s increments and decrements to inventory or the cost associated with determining the inventory balance.

Device History Record

Rootstock Device History Records are created and maintained in a tree structure that links serialized components to Serialized parents, starting with a Serialized Item at the top level with links to Work Order Issues and PO Receipts.  All transactions relating to the Device History are captured.


For larger version, please click on image.