12-11-2012, 02:00 PM
INVENTORY MANAGEMENT INVENTORY MANAGEMENT PRESENTED BY SWATI SUMIT GAURAV PANDEY
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What is Inventory :
What is Inventory A physical resource that a firm holds in stock with the intent of selling it or transforming it into a valuable state . It includes the following categories of items 1.Production Inventories 2.MRO Inventories 3.In-process Inventories 4.Finished goods Inventories
Inventory System :
Inventory System A set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be maintained.
BENEFITS :
BENEFITS Ensure a continuous supply of raw materials and supplies to facilitate uninterrupted production. Maintain sufficient finished goods for smooth sales operation and efficient customer service. It permits the procurement of raw materials in economic lot sizes as well as processing of these raw materials into finished goods in the most economical quantities.
Inventory cost :
Inventory cost Cost of maintaining average inventory level . -Includes: 1. Ordering cost - cost of placing an order with a vendor. - ordering from the plant. 2. Carrying cost – cost connected directly with material. - financial cost - capital cost - storage space cost - inventory space cost - inventory service cost - handling equipment cost - inventory risk cost