Types of Inventory Models
The choice you make for the inventory model of your products/grades will have a significant impact on how they are managed within the system. Upon creating a new product, you will be required to select an inventory model for it. Each product/grade will have it's own inventory model, but it's worth noting that cieTrade supports workflows that involve multiple products with different inventory models used collectively. The four inventory models to choose from are: serialized, bulk-perpetual, bulk-nonperpetual, and do not track.
Serialized Inventory:
Serialized inventory provides the highest level of traceability. Each inventory "lot" is assigned a unique inventory number, with each one having a distinct weight and cost per unit. Inventory reports can be ran by product specifications or warehouse location. This model is ideal for precise tracking and management of inventory.
Bulk Perpetual Inventory:
In the bulk perpetual model, inventory is considered as a collective mass of weight and value. This model is commonly used in plants where mixed loads are received and subsequently processed into separate, serialized inventory items. It allows for the processing of materials while maintaining the overall weight and value of the inventory pile.
Bulk Nonperpetual Inventory:
The bulk non-perpetual model is similar to bulk perpetual. Inventory is viewed as a pile of weight and dollars. This model is employed when weight is tracked, and the cost of goods sold (COGS) is assigned based on the allocated grade at the end of the month. It offers flexibility in tracking inventory by purchasing weight throughout the month and selling materials at different sale prices. Inventory levels are adjusted at the end of the month based on the remaining inventory. This model accommodates negative inventory balances and eliminates the need to create converting jobs to process or change materials.
Do Not Track Inventory:
The DO NOT TRACK option is for instances where inventory should not, and will not be tracked. Products can be bought and sold regardless of the quantity believed to be "on hand". Inventory levels are not tracked, nor is the cost of goods.
NOTE: This inventory model does not support inventory reports.
Visual Chart
| Serial | Perpetual | NonP | DO NOT TRACK | |
| Quantity 'on hand' tracked | x | x | x | |
| Compatible with inventory reports | x | x | x | |
| Ability to run inventory reports by warehouse | x | x | x | |
| Ability to run inventory reports by product specification | x | |||
| Ability to sell regardless of the quantity considered to be 'on hand' | x | x | ||
| Compatible with expense allocations | x | x | ||
| Converting jobs are required to change the material | x | x | ||
| Average unit cost | x | x | ||
By understanding and selecting the appropriate inventory model, cieTrade users can effectively manage their inventory, track costs, and ensure accurate reporting within their operations.
If you have additional questions, please contact the Support Team via email to support@cietrade.net.