SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply the principles of inventory management in the public sector 
SAQA US ID UNIT STANDARD TITLE
377894  Apply the principles of inventory management in the public sector 
ORIGINATOR
Task Team - Public Sector 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  NQF Level 05  12 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for practitioners in the public sector who are involved in, or working towards government administration at a management level. Learners will understand the concept of inventory management and evaluate and apply the various processes and techniques of inventory management. The standard creates an awareness of the legislative framework governing inventory management in the public sector. Acquiring the competencies of this unit standard will make the learners/practitioners increasingly cognisant of improving financial management, creating transparency and enhancing credibility within the inventory management environment.

The Unit Standard will equip government practitioners with skills in inventory management which will help them maximise the use of resources and improve service delivery.

Learners credited with this standard will be able to:
  • Understand inventory management and its role in the public sector.
  • Explain and calculate values for inventory for financial reporting.
  • Evaluate and apply budget and planning processes and methods for inventory.
  • Evaluate and apply inventory management techniques.
  • Evaluate and apply inventory management policies and procedures. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Communication at NQF Level 4.
  • Mathematical Literacy at NQF Level 4. 
    		•

    UNIT STANDARD RANGE 
    Public sector means or includes all three spheres of government (national, provincial and local), as well as any agency that is funded by the State. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate understanding of inventory management and its role in the public sector. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The purpose, scope and importance of inventory management are described focusing on the need to provide a basis for the accounting and management of assets. 

    ASSESSMENT CRITERION 2 
    Inventory management in the public sector context is defined and discussed with respect to its importance in maintaining accountability, transparency and efficiency. 

    ASSESSMENT CRITERION 3 
    An explanation is given of how the legislative framework for inventory management can be used to ensure compliance and improve financial management in the public sector. 

    ASSESSMENT CRITERION 4 
    The concept of inventory is defined and what constitutes inventory is explained using various documents applied in the public sector. 

    SPECIFIC OUTCOME 2 
    Explain and calculate values for inventory for financial reporting. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    An explanation is given of the importance of inventory valuation and the phasing-in of GRAP 12 to ensure transparency and credibility for all public sector entities. 

    ASSESSMENT CRITERION 2 
    Appropriate measures for inventory under cash and accrual accounting are selected and applied according to procedure. 

    ASSESSMENT CRITERION 3 
    The different types of measurement of inventories are explained focusing on the main features of each. 
    ASSESSMENT CRITERION RANGE 
    The types include measurement at recognition and measurement after recognition.
     

    ASSESSMENT CRITERION 4 
    The cost of inventory is discussed in terms of its constituent components. 

    ASSESSMENT CRITERION 5 
    The cost of inventory is calculated using First-In-First-Out (FIFO) and Weighted Average Cost (WAC) techniques. 

    ASSESSMENT CRITERION 6 
    The concepts of fair value and net realisable value are discussed highlighting their differences. 

    SPECIFIC OUTCOME 3 
    Evaluate and apply budget and planning processes and methods for inventory management. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Key concepts related to budgeting and planning are discussed to provide a basis for evaluating and applying these processes and recommendations are made to effect improvement. 
    ASSESSMENT CRITERION RANGE 
    Concepts include, but are not limited to aggregate fiscal discipline, allocative efficiency, operational efficiency, demand forecasting, cash flow and budgets.
     

    ASSESSMENT CRITERION 2 
    Inventory demand planning on operational plans is implemented in terms of the strategic direction and broad budget parameters of the organisation. 

    ASSESSMENT CRITERION 3 
    Resource planning is understood and applied to meet target service delivery levels. 
    ASSESSMENT CRITERION RANGE 
    Resource planning includes bill of materials, material requirements plan, Enterprise Resource Planning systems (ERP)
     

    ASSESSMENT CRITERION 4 
    Systems for inventory are evaluated and recommendations are made to improve these systems. 
    ASSESSMENT CRITERION RANGE 
    Systems include computerised and manual systems.
     

    SPECIFIC OUTCOME 4 
    Evaluate and apply inventory management techniques. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The cost of holding inventory is discussed and distinguished from inventory valuation. 
    ASSESSMENT CRITERION RANGE 
    Cost of holding inventory includes but is not limited to the opportunity cost of the investment in inventory assets, costs associated with warehousing, costs associated with loss of inventory, indirect overheads associated with warehousing.
     

    ASSESSMENT CRITERION 2 
    Inventory reorder models are discussed in terms of the reasons for which they are used. 
    ASSESSMENT CRITERION RANGE 
    Models include but are not limited to the economic order quantity model, quantity discount model, and reorder point model.
     

    ASSESSMENT CRITERION 3 
    Order quantities are calculated using inventory reorder models. 

    ASSESSMENT CRITERION 4 
    Inventory control systems are evaluated and recommendations are made to improve the systems. 
    ASSESSMENT CRITERION RANGE 
    Inventory control systems include but are not limited to coding of inventory, ABC inventory control, stock take (periodic/continuous), Just in Time (JIT) inventory control, physical protection of inventory, warehouse and stockroom organisation, technology in inventory management.
     

    ASSESSMENT CRITERION 5 
    The required competencies and training requirements for inventory management are analysed to ensure that plans are in place for all staff in each warehouse, stockroom or other inventory operation. 

    SPECIFIC OUTCOME 5 
    Evaluate and apply inventory management policies and procedures. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Policies and procedures in inventory management are discussed in terms of their importance. 

    ASSESSMENT CRITERION 2 
    Inventory management policies are evaluated and applied according to organisational procedure. 

    ASSESSMENT CRITERION 3 
    The manner in which policies are reviewed, adjusted, approved and endorsed is explained in terms of organisational procedure. 
    ASSESSMENT CRITERION RANGE 
    Policies to be reviewed include but are not limited to scope of inventory management policies, measurement of inventory for financial reporting, coding of inventory, resource planning systems, approaches for inventory control, stock levels, reorder quantities and timing, stocktake requirements, disposals (including disposal of damaged, spoiled or obsolete items), physical protection of inventory, warehouse and stockroom organisation, competencies and training requirements, systems for effecting and recording inventory transactions, audit programmes for inventory, procedure manuals, performance evaluation.
     


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through Recognition of Prior Learning) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Role of inventory management in the public sector.
  • Legislative framework - The Public Finance Management Act (Act 1 of 1999), Relevant regulations and guides.
  • Inventory management includes: Accounting for Inventory, Inventory Management Practices.
  • The Key Components of Inventory Management are:
    > Valuation techniques for Inventory.
    > Planning and Budgeting for Inventory.
    > Inventory Management Techniques.
    > Inventory Management Policies and Procedures. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • Evaluating inventory management practices and recommending improvements. 
    		•

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organisation, community to:
  • Perform a number of tasks within the inventory management environment.
  • Foster team commitment amongst the staff involved in inventory management. 
    		•

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one's activities responsively and effectively when:
  • Classifying assets as inventory.
  • Evaluating and applying budget and planning processes and methods for inventory.
  • Evaluating and applying inventory management techniques.
  • Evaluating and applying inventory management policies and procedures. 
    		•

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information to:
  • Evaluate and apply budget and planning processes and methods for inventory.
  • Evaluate and apply inventory management techniques.
  • Evaluate and apply inventory management policies and procedures. 
    		•

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and/or language skills in the modes of oral and/or written presentation to:
  • Preparing reports on the evaluation and application of budget and planning processes and methods for inventory, inventory management techniques and inventory management policies and procedures.
  • Preparing review reports on current inventory operations. 
    		•

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility towards the environment and the health of others by:
  • Using computerised systems and equipment according to manufacturer's instructions. 
    		•

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems by recognising that the problem-solving contexts do not exist in isolation when engaging with inventory management activities and challenges within the broader supply chain management field. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  67460   National Diploma: Public Administration  Level 6  NQF Level 06  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.