Re: [sap-log-mm] shelf life

Posted by Sap Land Thursday, 15 March 2012 21:47

Reply from VidhyaDhar on Mar 16 at 12:45 AM

Hi,

Each material which you procure and keep in stock has an inherent shelf
life.

Vegetables and fruits have a very short shelf life since they are
perishables and rot if not used within a short span of time . Likewise,
medicines have an expiry date beyond which they become unusable. The
inherent expiry period of each every material is called as the shelf life.
At this juncture, I would like to explain a scenario which proves to
demonstrate the importance of shelf life.

Earlier When I was working in an organization, I found that many rubber /
conveyor belts (which were expensive) had been procured and retained at the
stores. However, when I conducted an audit of the stocked materials, I
found that though the inventory value of such belts was very huge, the
practical utility value of such belts was nil. This was because the belts
had been procured more than one year ago and generally most rubber belts so
retained lose their elasticity within six months' time and become unfit for
use. This audit proved that a huge value of belt inventory appearing in the
balance sheet was actually worthless since the belts were kept in stores
beyond their shelf life and therefore had to be written off ( which means a
loss to the organization owing to mis-planned procurement and prolonged
stock-keeping without usage).

Get an idea of how shelf life can be of use?

Regards,

VidhyaDhar

---------------Original Message---------------
From: yatheeshkumarb
Sent: Thursday, March 15, 2012 11:21 PM
Subject: shelf life

Hi Vijesh,
Shelf Life is total life of the material.
Regards,
Yatheesh

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