My Tryst Wit= h Inventory Control

By Shaju Francis, AFA/SWR

On Indian Railways,= there appear to be two views about a posting in Stores Accounts wing. As it is an ‘= ;off-line’ entity, some consider it a less important and hence, a less preferred strea= m. On the other hand, many think that working in Stores Accounts needs special knowledge of intricacies of stores accounting including inventory accounts, inventory management techniques etc and, hence, that only handpicked office= rs can be posted there.

Any way, when I got= a posting in Stores Accounts, I made up my mind to actively contribute my mig= ht to inventory control. In order to gear up for this task, I started familiarizing myself with the inventory control concepts and techniques.

One fine morning, i= t dawned on me that just as in the case of charity, inventory control should also be= gin at home. This had many advantages. We can practise what we preach. At home = you have a compact unit. No hurdles of multiple reporting channels / department= s / decision making authorities with all the attendant advantages and convenien= ces .In fact, you have a captive clientele. Concurrent monitoring of end to end= impact of inventory control measures, is easier. The sk= ills and the experience gained can be gainfully put to use at the workplace

Having decided so, = I called my wife and asked her to give me a list of all the items usually purchased,= their consumption details, values etc.

She was amused. For= it was for the first time that I was showing any interest in such things.

I started explainin= g firmly “Look, you have been managing our inventory well, but at the same I m= ust say that it is high time that we changed from our traditional practices to modern scientific techniques”

Initially she looke= d bemused but then she started smiling. I could read the expression on her face. R= 16;This man is desperately trying to make fun” .Being a “serious” type of person that I am , whenever I try to cra= ck a joke, I end up generating sen= tences of this sort. So she must have taken my statement as an attempt in this dir= ection.

Therefore, wearing = a still more serious look, I resolutely started explaining the techniques and procedures one by one. Being a captive client, she had no option but listen= .

I explained the con= cepts of carrying costs, ordering costs etc. I categorized the items into ‘A&#= 8217; ‘B’ &’C’ and told her procurement of what items would need my approval. I laid down maxima , min= ima, and economic purchase quantity for all the items.

Now she was really = confused as to whether I really meant what I was saying and if so what I was really = up to. She came and patted my head as if to assure me she would try to implement a= ll these, but I knew that she was feeling for any loose nut in my head.

But I was very ster= n and firm .I relentlessly pursued the implementation of the new techniques Though it took a few days, I did get to her to fall in= line. But I noticed that her evening prayer was getting longer. I knew she took t= he additional time to pray that good sense prevail over me. Transition is always a little painful. I hoped God would reveal to her that by scientifically controlling inventory we only try to use the resources, which are a gift from God, in a= judicious way.

As things were prog= ressing satisfactorily, one day I had to go out for an inspection. It was at a remo= te station. In the morning, we set off early and hence, had to forego the break fast. Nothing suitable was available for lunch either. With tea now and then and a couple of masala vad= as, we just managed till evening. I thought we would board the train, sleep thr= ee, four hours, would be home and have sumptuous supper with chicken roast--wife had told = me she would make chicken roast. But with a stomach rising in revolt, sleep goddess did not bless us. Nothing worth its name was available on the train.

We were so desperat= e to reach our station that every passing minute appeared like an era. Three, fo= ur unscheduled crossings stretched our patience to the limit. Some how, I reac= hed home at ten. I took bath, sat down with hunger bad enough to eat an elephan= t. Finding nothing on the table, I threw a questioning look at my wife who was standing with a dispassionate expression.

Looking out through the window, she announced “There has been a stock -out”

In that state of mi= nd with hunger reigning= supreme, I could not imagine she would be talking using inventory control t= erms.

After a pause, she = said “The stock of a vital item viz gas was exhausted jus= t as I started cooking supper.”

It was a bolt from = the blue for me.

“What about t= he second cylinder?”

“Empty. Getti= ng a refill much in advance would cause blocking of money. Therefore, I get refill for the second cylinde= r only when the first is also is about to be over. A cylinder usually lasts 45 day= s.” “But this time it lasted onl= y 39 days. Mainly because we had guests for a few days, I forgot that”

To buttress her poi= nt, she added “This time you had a liquidity problem also. To save income tax, you had put a good amount in VPF.”

“Could n’t you have got parcel from some hotel? “= ;

“That would b= e an emergency purchase. But powers have not been delegated. And Competent Autho= rity was out of range”

“Some fruits?= ”

“All these are perishable items. Hence, Non Stock items . They are to be purchased Just In Time. When it was Just In Time for me, for all the shopkeepers it was Just Out Time.”

I exercised so much restraint, showed as much patience as earth.

“Bread ?”

“Yes, but I c= an issue it only on FILO basis”

I guessed FILO woul= d be connected to some inventory control jargon. I was aware about FIFO and LIFO= . But they are valuation techniques So staring at her, I asked “FILO ? ”

She said “First In Last Out. As you always say, we must adapt every thing to suit local condit= ions and our requirement. I have made FILO from FIFO and LIFO and use it for iss= ues. I had two packets of bread, one bought yesterday and the other, four days a= go. Yesterday’s, I issued to children on LIFO basis”

In my desperation, = I said “FIFO, FILO or whatever, please get me whatever is available.”<= o:p>

= S= he went and brought a packet of bread and kept it on the table. The sight was disgusting; it had got stale with colour turnin= g greenish yellow.

When she said goodn= ight and went away, there was a half concealed smile on her face.<= /p>

= I need not tell you what that insinuated.

&nb= sp; Instead of chicken roast and all, I had chickens coming home to roost.