Administration Manual - B.E.S.T. Undertaking.

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13.2.5 Inventory Control through COSUD (Consumer Operated
Spares and Units Depot)
Certain high value items of Ashok Leyland Ltd., Rane
Brake Linings, etc. are allowed to be stored in the
Undertaking’s premises in adequate stock. The inventory of
these is maintained by these firms, every month. The
Undertaking draws the items, as and when required. The
payment is released only after 7 days of acceptance. The
Zero Inventory is maintained with this system.
13.2.6 Standardization and variety reduction.
13.2.7 Review of excess stocks
The Consuming Department forecasts requirements. In
case of certain items, the stocks do not get consumed, as
per the forecast. Such items are regularly scrutinized and
referred to the department for their analysis, advise as well
as for future guidance.
13.2.8 Operation of –25% Quantity Variation Clause, in case
of non-required/slow moving items.
13.2.9 Procedural checks at every stage - Examples
i) If the forecasted requirement exceed by +25% or
more, justification is called from forecasting authority
on Recoupment Slip.
ii) Quantities are curtailed, deliveries are further
staggered while placing P.O. if available stock is found
to be more/non moving etc., in consultation with
consuming dept.