TABLE OF CONTENTS As the storeroom stock is utilized, it becomes necessary to restock items. There needs to be a process for reordering items, whether they are stock or non-stock items. This chapter will concentrate on stock items.
Figure 4-1 illustrates the process of ordering stock items. As spare parts are used from the storeroom, the stock is depleted. Based on certain criteria for example, max-min levels or a type of reorder point the stock will be reordered. The items to be reordered will typically be identified by a computerized inventory system. These systems can range from very simple to very complex systems. Still, even the most basic system will create a need-to-reorder report.
Once the storeroom attendant has run this report, it is necessary to identify whether the parts needing to be ordered are pre-approved for purchase or must be approved individually. If the part is pre-approved for purchase, the storeroom attendant will create a purchase requisition. Once this requisition is approved, it will be issued as a purchase order, which will then be sent to the appropriate vendor.
If the part is not pre-approved, a report should be printed and reviewed line item by line item. Depending on the authority level required, the storeroom attendant, a manager, or a designated approver will make the decision to reorder each part. These individuals will be provided with certain criteria on which to order each item. If the order falls within the criteria for the stock item, then...
