Posted in Operations and Supply Chain Terms, Total Reads: 243
Codifying is basically to arrange into a systematic code. In inventory management, codification is a process of identification for each item of the inventory.
There are basically three approaches to develop an identification system:
1) Arbitrary approach: In this approach, a random number in queue is applied to an item when it arrives in the warehouse.
For example, 5767899.
2) Symbolic approach: Also, called Intelligent Coding System, here the number assigned to any inventory gives some detail about that particular item. For example, an item is assigned the code 2145098344. Here, 2 gives the “class of the item”, 145 the “subclass”, 098 the “running number and 344 the “location code”.
3) Use of drawing numbers: In many firms, where manufacturing involves complex drawings, drawing numbers are used to identify a particular item from the inventory stock.