Product Components. FIFO Stock Rotation.
In today's class we are continuing on with inventory lessons. We're going to learn about product components which is where you have a product that you manufacture such, as the computer system, that is made up of components that you purchase from one or more vendors. For example, you buy the motherboard, the keyboard, mouse, hard drive, etc. and you assemble those and create your own product for resale.
Then we're going to look at FIFO stock rotation which means First-In, First-Out. This usually has to do with perishable items, but even in my old business of computer sales I didn't want products sitting on the shelf too long. Even though it's the same hard drive, the manufacturer's warranty might run out after a year, so I want to keep track of my oldest stock and sell those first. We'll learn how to handle that properly.
In Lesson 1, we will learn how to create components for each of our products. This way we can purchase components from our vendor (like computer parts) and then specify which of them and what quantity of each are used to assemble a product unit. We can calculate our unit cost and specify our sale price.
In Lesson 2, we are taking a trip back to high school algebra. We'll calculate our profit (that's easy), our gross margin, and our markup. Then we're going to make buttons to adjust all three. So, say you want to specify a 20% margin. Using algebra we can determine what to set the sale price too. Likewise, if you want a 5% markup. Then we'll make an option to raise the unit price to 99 cents, so no matter what the final sale price comes to, it's always something like $12.99.
In Lesson 3, we're going to learn how to handle FIFO stock rotation. You want to make sure the oldest good that aren't expired are sold first. We'll see how to track the date the items are added to inventory, store an expiration date, and when that item is added to an order, we'll track that too. When the user scans in a specific item, we'll put it on the order. If they just choose "Product A" then we'll have the database find the Product A that has been in inventory the longest without being expired and direct them to get that specific unit.
In Lesson 4, we're going to learn how to delete items from invoices. Let's say the customer changes their mind and doesn't want one item from the order. We have to then remove it, but also place that item back into inventory. We're going to learn how to manage this and see a better way than using the built in delete events.
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