Module 2 - EMC - Inventory Notes

Inventory Management

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NOTES ON INVENTORIES AND MATERIAL MOVEMENT

EMC does not account for inventories on a an inidividual product line basis. But data is available for the Construction Hdwe Product Group - see below. Plasti-brack is about 85% of this group, so using this info would be representative of the inventories for Plasti-bracks.

Plasic Injection Molding process: Plastic resin is moved to the molding macnines where it is dumped into feeding hoppers for each machine. As the hopper empties, additional resin is dumped in.

The plastic parts come out of the molding machines and are trimmed where they are collected in 10 cu. ft. tubs. These tubs are moved to the Plasti-Brack assembly area.

Metal Bracket Process: The plain brackets are stamped out by the progressive dies in the Plasti-Brack press machine group. They are also collected in 10 cu. ft. tubs and then moved to the Plasti-Brack assembly area.

Assembly Process: In the assembly process, the operator will do a quick visual check of the plastic insert and the plain bracket before assembly. Bad parts are discarded into tubs. The plastic is recycled via a regrind process. The steel parts cannot be used again and sold for scrap with the rest of the scrap metal.

Bulk Pack Process: The assembled Plasti-Brack items are collected in 10 cu. ft. tubs and are eventually moved to the Bulk Pack area. Once they are packed, they move into the Finished Goods Warehouse where they wait to be picked and packed in large shipping containers to the customers.

Construction Hardware Inventories

Beginning

Ending

Inventories

(000s)

(000s)

Raw

$ 61.5

$ 55.0

Purch Parts

$ 44.4

$ 42.0

WIP

$ 116.7

$ 99.0

Fin. Goods

$ 72.6

$ 75.0

TOTAL INVEN

$ 295.2

$ 271.0