Inventory Management - 1 Inventory Definition A stock of...

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2 Inventory Definition A stock of items held to meet future demand Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.
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3 Work in process Work in process Work in process Finished goods Raw Materials Vendors Customer
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4 Nature of Inventories Raw Materials – Basic inputs that are converted into finished product through the manufacturing process Work-in-progress – Semi-manufactured products need some more works before they become finished goods for sale Finished Goods – Completely manufactured products ready for sale Supplies – Office and plant cleaning materials not directly enter production but are necessary for production process and do not involve significant investment .
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5 Objective of Inventory Management To maintain a optimum size of inventory for efficient and smooth production and sales operations To maintain a minimum investment in inventories to maximize the profitability Effort should be made to place an order at the right time with right source to acquire the right quantity at the right price and right quality
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6 An effective inventory management should
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  • Spring '17
  • Supply chain management terms, ABC classification, annual rupees usage

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