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Elements and Performance Criteria

1. Identify inventory systems
   • Software, applications and devices used in the inventory system are identified
2. Third party inventory control operations are verified
3. Demand forecasting methods and tools are determined
4. Inventory system policies, procedures and processes are confirmed
5. Plan and administer inventory
   • Inventory characteristics are ascertained
6. Stock specifications, locations, labels and reference numbers are validated using the inventory system
7. Receipt and despatch stock is securely stored in designated locations and the inventory system is updated, as required
8. Stock is monitored and reordered to meet optimum replenishment requirements, in accordance with organisational inventory procedures
9. Stock is requisitioned and documentation is updated on the inventory system, as required
10. Stock sorting, recycling and disposal is undertaken, in accordance with organisational inventory procedures
11. Stock damage and losses against forecasts are assessed and investigations are completed into unacceptable cases
12. Stock security is maintained, in accordance with organisational inventory procedures
    • Inventory is monitored and tracked using the inventory system
13. Buyers are kept informed of stock levels, in accordance with organisational inventory procedures
14. Inventory transactions are monitored, in accordance with organisational inventory procedures
15. Reorder cycles are adjusted to maintain consistent supply, as required
16. Discrepancies, out of specification and redirection opportunities are managed and reported using the inventory system
17. Inventory reports are analysed and corrective action is taken, as required
18. Vendor Managed Inventory (VMI) systems are used to manage inventory, as required
19. Complete inventoryaudits and reports
    • Inventory audits and cycle counts are performed, in accordance with organisational inventory procedures
20. Report on inventory system management is produced, in accordance with organisational inventory procedures

Range Statement

Range is restricted to essential operating conditions and any other variables essential to the work environment. Non-essential conditions may be found in the Companion Volume Implementation Guide.

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Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria on at least one occasion and includes

assessing and managing stock quality including analysing discrepancies, out of specification and redirection opportunities categorising and labelling stock checking inventory specifications ensuring handling, sorting, disposal and recycling of stock is performed following organisational inventory policies and procedures identifying inventory characteristics maintaining and managing optimum stock levels meeting inventory system documentation requirements monitoring stock security reading and interpreting information and data related to inventory systems recording and maintaining inventory information undertaking quality control using the inventory system including inventory software and applications utilising Vendor Managed Inventory (VMI) systems validating third party inventory control operations.

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Knowledge Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria and includes knowledge of

features of inventory systems financial implications of inventory management inventory documentation and reporting requirements including those for discrepancies, out of specification and redirection opportunities inventory loss and damage control inventory policies and procedures inventory tracking and security layout of inventory storage areas maintenance and monitoring of stock quality and levels methods for categorising and labelling inventory principles of inventory management principles of quality control reorder cycles storage conditions for the maintenance of inventory including product life cycles, maximising use, rotation and replenishment requirements third party inventory control operations types of inventory systems valuation methods for different inventory items Vendor Managed Inventory (VMI) systems.

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