Warehouse Management

A warehouse can be found at every level of an intra‐organizational supply chain. It is possible to have a warehouse upstream for the stock of raw materials, in‐house during the production process for intermediate and/or semi‐finished products and downstream for finished products. Warehouse management is a central component of business management. The layout of a warehouse must be considered in terms of both the physical configuration and the regulations imposed for its operation. A stock inventory consists of the identification, counting and assessment of stock in the company. Three methods are available in order to value inventory throughout the process, but only two of them are accepted by the normes internationales d'information financière IAS/IFRS (International Financial Reporting Standards), namely the Coût Unitaire Moyen Pondéré (CUMP) (Weighted Average Unit Cost or WAUC) and the First‐In‐First‐Out (FIFO). It is possible to apply three methods of stock valuation: the WAUC, the FIFO method and the LIFO method.