Calculating the Cost of Goods Manufactured is a good way to get an overview of production costs and how they relate to the bottom line of your business. It allows management to identify cash drains, to adjust prices, and to track the development of the business.
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The inventory turnover ratio is a good indicator of the performance of your company. Find a balance between sales and stock by using these formulas and tips.
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Cost of Quality is the sum of the costs related to providing a quality product and the costs related to not providing a quality product. While being an effective measure to identify cash drains, it can also be used to balance the price and quality relationship of your products.
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Although a periodic inventory system might seem clear-cut and foolproof at first glance, its disadvantages may outweigh the benefits. Perpetual inventory systems, however, are already becoming mainstream.
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Safety stock is the buffer that helps manufacturers keep serving their customers when disruptions occur.
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Backorders are orders for goods that a company cannot fill at present because demand has outpaced supply.
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Capacity Planning used in conjunction with an ERP system can improve the accuracy of planning and help control costs as well as plan for future expansion and growth.
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For a food manufacturing business, many requirements must be met, which can vary depending on the type of food you make, the facilities that you use, and the market you operate in.
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Accounting manual is a document in which every organization defines its accounting policies and procedures – in this article, we give an overview of its goals and contents.
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A robust and accurate planning system is critical to any manufacturer. In this article, we are comparing different purchasing practices – ROP/ROQ Principles vs MRP System Planning.
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The article gives an overview of what are accounting source documents and what are their goals, content, and examples.
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Following good practices is recommended when managing the SKUs. Here is an overview of some of the best practices to follow.
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