WHAT ARE INVENTORIES?
Inventory refers to stock of raw materials , work in progress and finished goods
Can be stored for future use.
Inventory possess value.
Objective of inventory is to ensure continuous supply of goods at reasonable cost.
NEEDS OF INVENTORY
To maintain continuous flow of supply through supply chain .
To maintain safety stock.
To achieve economy of scale in transportation .
NEEDS OF INVENTORY
To make a bulk purchase & get advantage of discount .
To maintain customer service level
What is inventory control?
It is planning, ordering and scheduling of material.
Right quantity of material available at right time.
Systematic control over purchasing, storing and using of material.
FUNCTIONS OF INVENTORY CONTROL
Effective use of financial resources.
Protection against all material losses.
Proper calculation of cost of production.
Keep the ball of production bouncing.
Economies in purchasing.
Eliminates redundant inventory.
Keeping prompt delivery to the customers.
SCOPE OF INVENTORY CONTROL
Formulation of relevant policies
Determining economic order quantity
Determining lead time
Minimization of material-handling and storage cost
Ascertaining Safety Stock
Main Techniques in Selective Inventory Control
ABC Analysis
VED Analysis
SOS Analysis
JIT Analysis
HML Analysis
XYZ Analysis &
many more….
Inventory refers to stock of raw materials , work in progress and finished goods
Can be stored for future use.
Inventory possess value.
Objective of inventory is to ensure continuous supply of goods at reasonable cost.
NEEDS OF INVENTORY
To maintain continuous flow of supply through supply chain .
To maintain safety stock.
To achieve economy of scale in transportation .
NEEDS OF INVENTORY
To make a bulk purchase & get advantage of discount .
To maintain customer service level
What is inventory control?
It is planning, ordering and scheduling of material.
Right quantity of material available at right time.
Systematic control over purchasing, storing and using of material.
FUNCTIONS OF INVENTORY CONTROL
Effective use of financial resources.
Protection against all material losses.
Proper calculation of cost of production.
Keep the ball of production bouncing.
Economies in purchasing.
Eliminates redundant inventory.
Keeping prompt delivery to the customers.
SCOPE OF INVENTORY CONTROL
Formulation of relevant policies
Determining economic order quantity
Determining lead time
Minimization of material-handling and storage cost
Ascertaining Safety Stock
Main Techniques in Selective Inventory Control
ABC Analysis
VED Analysis
SOS Analysis
JIT Analysis
HML Analysis
XYZ Analysis &
many more….