Obtaining inventory

In this lesson

1. 0:00 Introduction to inventory and materials management
2. 0:13 The lifecycle of materials in manufacturing
3. 1:07 Ordering materials from suppliers
4. 2:04 Receiving and storing raw materials
5. 2:47 Issuing materials into production
6. 3:12 Supporting documentation overview
7. 5:02 Reorder levels and purchase requisitions
8. 6:25 Goods received notes and supplier verification
9. 8:02 Materials requisition and internal transfers
10. 9:43 Returns and audit trails for inventory control

About this lesson

You'll discover the key stages of inventory control—from placing purchase orders and receiving goods through to storing and issuing materials—and the essential documentation that supports each step. This knowledge is critical for Performance Management and Management Accounting papers, where inventory management directly impacts cost control and operational efficiency. By mastering these processes, you'll understand how to maintain effective control over materials, prevent waste, and ensure production runs smoothly without stockouts or excess inventory. The lesson walks through the practical workflow step by step. It begins with ordering: how purchase requisitions trigger purchase orders based on reorder levels, and why communicating with suppliers matters. You'll learn what happens when materials arrive—the importance of checking delivery notes against goods received notes to ensure accuracy. The lesson then covers storage in the stores department, explaining how this separate function protects valuable materials and maintains organisation. Finally, you'll see how materials move into production through materials requisition notes and materials transfer notes, with provisions for returning unused stock. Throughout, the focus is on the supporting documentation that creates an audit trail and keeps every department aligned—from purchasing to stores to production to accounts.

Duration: 10m