View Full Version : Bids: Issues vs. Orders
06-04-2009, 06:35 PM
I work for a utility company which comprises both gas and electric. My buyer in gas has been bidding the inventory items according to the average annual items purchased. My buyer in electric has been bidding the inventory items according to the average annual items issued. Obviously, we want them to start using the same formula. I was wondering what the general consensus was either way. Thanks for your help.
06-07-2009, 12:56 AM
I would think that placing on orders issued would be wiser to minimize inventory and the cost associated with carrying inventory.
06-22-2009, 05:06 PM
I manage inventory for a municipally owned electric utility. One factor we deal with is that we have a facility that repairs, tests, and returns used transformers and other equipment to inventory to be reissued. In our most extreme case, we buy less than 20% of the units we issue, due to the upgrade of units in the field.
If your utilities has repair shops, your buyers should be paying attention to purchases versus issues, and taking into account any major discrepancies. Small discrepancies are normal, but issues more than 10% over (or under) purchases are a red flag to me.
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