INVENTORY MANAGEMENT

CASH

Each branch has a vault that stores and provides cash to each teller and to the ATM (Automatic Teller Machine). The inventory system used is a continuous review system. The vault manager has to monitor the stock position after each transaction (continuously) and when the stock position drops to a predetermined level, the vault manager will place a fixed amount of cash order. There is only one cash supplier for the bank designated for the Corporate Office. The cash will be received the next day (lead time = one day).

OFFICE SUPPLIES

Each branch operations manager is responsible for the office supplies such as paper, envelopes, transaction slips, binders, pens, pencils, printer ink, stamps, etc. A periodic inventory system is used for office supplies. The stock position of each office supplies is reviewed monthly and an order is placed on-line to achieve a target stock position level. Investors Savings Bank has 4 supply companies (suppliers). Each branch operations manager decides where to place the order. The supplies will be received in between 3 or 4 days depending in the supplier.