Your business has expanded very quickly. This means so has our inventory. As the senior inventory manager, you need a better accuracy of inventory. Currently, the business has no method to audit inventory.

There are 3 parts to this assignment.

1. Analytical Using the article as your reference for counting inventory. Let's assume that the letters are our companies inventory. Select two methods of auditing inventory and then discuss the pros and cons of doing those methods. (make sure you do some research)
2. Selection from part 1, select a method which you would recommend to senior management. Do not forget a recommendation of this nature needs to answer the question of why.
3. Last section Great news, your recommendation to senior management was accepted. Now you must develop a Standard Operating Procedure (SOP). These types of documents are typically used as a method of training aid. When you are writing up this SOP do not forget to include all the steps needed to have a successfully audited inventory.

Note:

Part 3:

• The SOP must be completed to a highly professional level. Clarity, appearance, content, spelling and grammar are all important aspects of the report.

• From the SOP, is it clear on the steps to do the inventory audit
• How will you reconcile the inventory audit? What are the steps to reconcile the inventory?