Standard Operating Procedure Title: Warehouse Inventory Management

______________________________________________________________________________________

Department Prepared by: Checked by: Approved by:

Warehouse Date: Date: Date:

Document no

WAR-025 Supersedes: Date Issued: Review Date:

Document Owner
Warehouse Manager

Affected Parties
All warehouse staffs

Purpose
To outline the steps involved in the procedures of conducting inventory stocktake.

Scope
To be followed by all authorised Warehouse staff.

Definition
DR GRS MTO Laboratory Batch No. BPN Deviation Report Goods Receipt Slip Form Material Transfer Order Form Unique number assigned to each incoming material before laboratory testing Batch Production Number

Related Documents
Form-020 Form-055 Form-075 Form-050 Form-045 Form-040 WAR-030 WAR-005 QMS-035 Bin Sheet Material Transfer Order Form Goods Receipt Slip Warehouse Periodic Inventory Count Sheet Bin Sheet Reconciliation Form Physical Inventory Count Form Warehouse Locations and Storage Area Receipt of Incoming Goods Deviation Report System

EHS Statement
If using the Forklift cage to conduct the Stock Count, ensure the Pins are securely in place.

This is not an approved copy unless stamped in red File Location: Date Printed:

Page 1 of 8

Standard Operating Procedure Title: Warehouse Inventory Management

______________________________________________________________________________________ production consumables and goods which are not related to production processes can be classified as C and counted annually. 2.3.

Counting by Material Code

2.3.1. At the beginning of each month all raw materials are counted for the previous month. Warehouse authorised staff print out a copy of Warehouse Periodic Inventory Count Sheet (Form-050). Write the month and year for which the counting will be done. Write the balance of the material brought forward from the previous month and the corresponding Laboratory Batch Number for the material as shown in the example below. 2.3.2. Collect all the GRS, MTO, MTO-Return forms generated during the month from the warehouse office cabinets. Collect the Warehouse Periodic Inventory Count Sheet (form-050) for the previous month. 2.3.3. For the particular material code pick the quantity received, date received, GRS number and the Lab. Batch number from the GRS forms and start to fill up from the second row of the Warehouse Periodic Inventory Count Sheet. Write the date of the material issued, quantity issued, MTO number and Lab. Batch number from the corresponding MTO forms. 2.3.4. While filling up the form special attention should be given to ensure the logical sequence of date and Lab. Batch number is maintained throughout the form. GRS number can be cross checked from the MTO reference. 2.3.5. On each row determine the balance by using the equation Available stock plus received qty. minus Issued qty. In no time the balance can go negative. Determine the balance of the material and corresponding Lab. Batch number at the end of the month and write on the sheet. Print the persons name who prepared the form, sign and date. Note: Since the inventory system in Sydco follows FIFO (First in First Out) rule the earliest batch number will be issued first and the month end balance will be from the latest batch available.

This is not an approved copy unless stamped in red File Location: Date Printed:

Page 3 of 8

Standard Operating Procedure

Title: Warehouse Inventory Management

______________________________________________________________________________________

EXAMPLE: Warehouse Inventory Count for material 999 in the month of May 2006 Warehouse Periodic Inventory Count Sheet Material Code: 999 Year: 2006 Sign: Date: Lab. Batch No: 06.04.000010 Receiving Lab. Batch no Qty. issued 1000 1000 1000 2500 500 2000 2500 1000 1000 L1.000220 L1.000225 L1.000227 L2.000250 L2.000260 L1.000290 L1.000300 L1.000320 L1.000320 MTO # 06.05.000050 06.05.000080 06.05.000080 06.05.000110 Issuing Lab. Batch no 06.04.000040 06.04.000040 06.05.000050 06.05.000050 06.05.000050 06.05.000050 06.05.000080 06.05.000080 06.05.000080 06.05.000110 Balance 1000 kg 6000 5000 4000 3000 8000 5500 5000 3000 3500 1000 3000 2000 1000

Month: May

Prepared By:

Balance brought forward from April: 1000 kg GRS # 06000060 06000100 06000060 06000100 06000100 06000105 06000100 06000100 06000105 06000105 06000105 06000115 06000105 06000115

Material code 2000 -

Date received/

Qty. received

issued

999

999

05/05/06

5000 kg

999

07/05/06

999

07/05/06

999

10/05/06

999

12/05/06

5000 kg

999

15/05/06

999

15/05/06

999

17/05/06

999

17/05/06

Return 500 kg

999

20/05/06

999

22/05/06

999

24/05/06

999

24/05/06

Balance Brought Forward To June: 1000 KG

Lab Batch No.: 06.05.000110

This is not an approved copy unless stamped in red Date Printed:

File Location:

Page 5 of 8

Standard Operating Procedure Title: Warehouse Inventory Management

______________________________________________________________________________________ EXAMPLE: Bin Sheet Reconciliation for material 999 in the month of May 2006. Warehouse Bin Sheet Reconciliation Form Material Code: 999 Month: May Prepared By: Bin sheet no. 1 2 Storage Type BS BS BS BS BS 3 BS BS BS BS 4 BS Storage Bin A-01-01 B-04-05 B-04-05 B-04-05 B-04-05 C-04-08 C-04-08 C-04-08 C-04-08 A-02-07 Date 07/05/06 07/05/06 10/05/06 15/05/06 15/05/06 17/05/06 17/05/06 20/05/06 24/05/06 24/05/06 Year: 2006 Sign: Lab Batch No. 06.04.000040 06.05.000050 06.05.000050 06.05.000050 06.05.000050 06.05.000080 06.05.000080 06.05.000080 06.05.000080 06.05.000110 2500 1000 1000 Date: Qty. issued Qty. returned Remaining on the bin sheet 0 4000 3000 500 0 3000 500 3500 1000 0 1000

1000 1000 1000 2500 500 2000

A. Quantity brought forward from April: 1000 B Total quantity received for the month (count all GRS): 12000 C. Total quantity returned for the month: 500 D. Total quantity issued for the month: 12500 Remaining Balance (A+B+C-D): 1000 2.5.

Conducting the Physical Count

The count is a physical check of the stock quantities in each bin/compactus space, etc. 2.5.1. From the Warehouse Periodic Inventory Count for material 999 and Bin Sheet Reconciliation for material 999, it was found that our current stock for the material

This is not an approved copy unless stamped in red File Location: Date Printed:

Page 7 of 8

Quantity after sampled:

Form-020 Issue date:

Bin Sheet
(Ref. SOP WAR-005; WAR-015) After finishing the Bin Sheet for this pallet keep the form in the warehouse office Bin Sheet folder for the month. The form will be used for Monthly warehouse inventory counting.

Storage Type: Storage Bin: Lab. Batch No.:

Material Code: Start Date: Finishing Date:

DATE

ISSUED

RETURNED

BALANCE

Please ensure you update quantities every time you issue from here

File Location:

Date Printed:

Page 1 of 1

Form-045 Issue date:

Warehouse Bin Sheet Reconciliation Form

(Ref. WAR-025)

Warehouse Bin Sheet Reconciliation Form

Month: Prepared By: Bin sheet no. Storage Type Material Code: Year: Sign: Storage Bin Date Lab Batch No. Qty. issued Date: Qty. returned Qty. remaining on the bin

A. B C. D.

Quantity brought forward from previous month: Total quantity received for the month (count all GRS): Total quantity returned for the month: Total quantity issued for the month:

Remaining Balance (A+B+C-D):

File Location:

Date Printed:

Page 1 of 1

Form-055 Issue date

Material Transfer Order

(Ref. WAR-015; MAN-080)

MATERIAL TRANSFER ORDER

WAREHOUSE TO FILL UP Page: Date: Assembler name: Sign:

PRODUCTION TO FILL UP Transfer Order Number: LX.YYYYYY Created Date / Time: Created By: Batch Production No. (BPN): XXXXXX

Process Line: Lab. Batch number Source storage type Target Qty. 25 KG 25 KG Destination storage type BS PW Expiry date YY.MM.000000 DD-MM-YYYY Assembler count Reference GRS no.

Material Code

Material Description

i.e.

XXX Paracetamol BP

Source storage bin Destination storage bin A-01-01 WIP area 1

YYXXXXXX

1.

2.

3.

4.

5.

6.

7.

8. Pallet qty: Warehouse checked by: QA reviewed by:

Assembled by: Production checked by:

File Location:

Date Printed:

Page 1 of 1