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Definition: Codifying

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.


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