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INVENTORY MANAGEMENT
STUBTechPROM2016038
SOLUTIONS
A. Coding is the process of representing each item by numbers and alphabets. It is a straight
forward and easy way of describing and identifying items in stores or warehouse.
The inventory of any company has thousands and thousands of items, which will only
keep increasing if steps are not taken to reduce them. To begin the processes reduction,
the first step required is to uniquely and unambiguously identify each and every one of
the items. This is done by a number to each item called a code. The process is called
codification.
Five reasons why an organization should take coding as an essential element in effective
management of warehousing are: