Coding

Techniques
Inventory Coding
Techniques
● Sequence
● Blocks
● Group-Classificatio
n
● Significant-Digit
● Decimal
● Mnemonic
● Numeric-Alphabetic
● Consonant
● Raw Material
● Supplier
Design Considerations in Coding

● Codes should serve some useful

purpose.
● Codes should be consistent.
● Codes should be standardized
throughout the organization.
● Codes should plan for future
expansion.
 Types of Codes

● Mnemonic Codes give visible clues concerning the

objects they represent.
● Sequence Codes assign numbers or letters in
consecutive order.
● Block Codes are sequential codes in which specific
blocks of numbers are reserved for particular uses.
● Group Codes reveal two or more dimensions or
facets pertaining to an object.
Coding
Techniques
Sequence
Sequence Codes
Codes

● Purpose
○ Used for Coding Short Lists
● Method
○ Each Item is given a Unique Number
● Advantages
○ Simple to Use & Apply
○ Coding of Unlimited Items Possible
● Limitations
○ Grouping of items not possible
○ Directory Required for Decoding
Coding
Techniques
Sequence
Sequence Codes Example
Codes

Code Description

1 Accounts
2 Engineering

3 Marketing
4 Administration
5 Maintenance
Coding
Techniques
● Sequence
Block Codes
Codes
● Block
Codes
● Minor refinement of sequence codes
● Series of consecutive codes divided
into blocks
● Each block represents a group of
items
● Each block contains used and
unused codes
● Unused codes are provision for
expansion
Coding
Techniques Block Codes Example
● Sequence Code Description
Codes
● Block
1 Razor Blades – Packed 10
Codes 2 Razor Blades – Packed 25
3 Razor Blades – Packed 50
4
5
6 Safety Razor – Gold
7 Safety Razor – Silver
8 Safety Razor – Chrome
9 Safety Razor – Aluminium
10
11

12
Coding
Techniques
● Sequence
Block Codes
Codes
● Block
Codes
● Advantages
○ Simple to Use and Apply
○ Search easier compared to Sequence
Code
● Limitations
○ Limited Expansion Capability
○ Decoding Requires Directory
Coding
Techniques Group Classification
● Sequence
Codes
● Block
Codes
Codes
● Group ● Code is divided into major,
Classificat
ion Codes
intermediate and minor groups
● Number of code digits required
depends on number of groups
Coding
Techniques Group Classification Codes
● Sequence
Codes Example
● Block
Codes
● Group
Type of Shape Chemical Siz
Classificat Materia Composition e
ion Codes
12
l 3 456 789 Digits
06 Carbo
n Steel
4 Sheets
061 Cold
Rolled
092 4’ x 8’
Coding
Techniques
● Sequence
Significant Digit Codes
Codes
● Block
Codes
● Group ● Codes describes characteristics of
Classificat
ion Codes
item
● Significant ● Decoding not required
Digit
Codes ● User Oriented
Coding
Techniques
● Sequence
Significant Digit Codes
Codes
● Block
Codes
● Group
TT 670 15 B 1 Tube Type
Classificat Size 670 x 15
ion Codes
● Significant Black Wall
Digit
1st Line
Codes
TT 710 15 W 1 Tube Type
Size 710 x 15
White Wall
1st Line
Coding
Techniques
● Sequence
Decimal Codes
Codes
● Block
Codes ● Used primarily for indexing libraries
● Group
Classificat ● Whole numbers resemble group
ion Codes coding with slabs of 10
● Significant
Digit 520 Astronomy
Codes
● Decimal 530 Physics
Codes 531 Mechanics
531.1 Machines
531.11 Lever and Balance
531.12 Wheel and Axle
Coding
Techniques
● Sequence
Mnemonic Codes
Codes
● Block
Codes
● Group ● Consists of letters and numbers
Classificat
ion Codes
● Letters interspersed between
● Significant numbers
Digit
Codes ● Derived from description of item
● Decimal
Codes ● Easy to memorize
● Mnemonic
Codes ● Good for short list of items
Coding
Techniques
● Sequence
Mnemonic Codes
Codes
● Block
Codes
● Group
Classificat Item Size Color and Manufacturer
ion Codes style
● Significant BY 010 RB 01
Digit
Codes
● Decimal
Codes
● Mnemonic
Codes
Bicycl 10 Red Boy’s Eagl
e ” e
Coding
Techniques
● Sequence
Numeric-Alphabetic Codes
Codes
● Block
Codes ● Consists of numbers only
● Group
Classificat ● First two digits represent alphabets
ion Codes
01001 Agri Autos Ltd
● Significant
Digit
01002 Attock Cement
Codes 05001 Engro Pak Tank Terminal Ltd
● Decimal 08001 Hino Pak Motors Ltd
Codes 12001 Lucky Hardware
● Mnemonic
18001 Roche Pakistan Ltd
Codes
● Numeric- 20001 Tapal Energy Ltd
Alphabeti 20001 Thal Engineering
c Codes 26001 Zelin Limited
Coding
Techniques
● Sequence
Consonant Codes
Codes
● Block
Codes ● Made up of abbreviations
● Group
Classificat ● Initial letters of data retained
ion Codes
● Significant ● Vowels are dropped, including W &
Digit
Codes Y
● Decimal
Codes
● Advantages
● Mnemonic ○ Coding is easy
Codes
● Numeric- ○ Decoding requires very little experience
Alphabeti
c Codes
● Drawback
● Consonant ○ Not suitable for computer application
Coding
Techniques
● Sequence
Consonant Codes Example
Codes
● Block
Codes
● Group
Pmp Hndls Pump Handles
Classificat
ion Codes
● Significant Trck Mtrl Track Material
Digit
Codes
● Decimal Crnk Shift Crank Shaft
Codes
● Mnemonic
Codes
Cplng Coupling
● Numeric-
Alphabeti
c Codes
● Consonant
 Inventory
Classification

Proce MUSIC Cost Deman

Groupin Shelf Locati Safet Oth
ss 3-D Cente d
g Life on y ers
Stage Code r Type

Main Warehous Dependent

Sub e Independent
Detail Bin

Raw Material Cost

WIP Availability Maintenance
Finished Criticality Dependence