INVENTORY MANAGEMENT

Group 1.

INVENTORY

Defined as the goods held for eventual resale by the firm.

Inventories may be durable or non-durable, perishable or non- perishable, valuable or in-expensive.

Inventory may be defined as “quantity of

goods, commodities or other economic

resources that are stored or reserved at any

given point of time for the purpose of smooth

and efficient running of business affairs.”

KINDS OF INVENTORY

Raw Materials

Goods in Process

Finished Goods

Spare parts and Components

Repairs & Maintenance

TYPES

Mainly Classified Into

Direct Inventory.

Indirect Inventory.

According to the Nature Of Materials

Production Inventory

MRO Inventory(Maintenances, Repair, Operating)

In-Process Inventory

Finished Goods Inventory

INVENTORY MANAGEMENT

90% part of working capital is invested in inventories.

Give proper attention to inventory

Proper planning of purchasing, handling, storing and accounting

EFFICIENT MANAGEMENT

What to purchase.

How to purchase.

From where to purchase.

Where to store.

PURPOSE

Over-Stocking A reduction of liquidity and starving of other

production process.

Under-StockingResult in the stoppage of work.

Objectives

Sufficient Inventory.

Minimizing Unnecessary Capital.

Maintaining Production.

Minimize Wastes and Losses.

Meet Demand.

Control Costs.

Identify Opportunities.

Storage of Items.

Other objectives

To ensure continuous supply of materials.To avoid both over-stocking and under-stocking of

inventory.To maintain at the optimum level.To keep material cost under control.To eliminate duplication.To minimise losses.To design proper organization.To ensure right quality goods at reasonable prices.To facilitate furnishing of data.

IMPORTANCE

Avoiding Losses of Sales.

Gaining Quantity Discounts.

Reducing Order Costs.

Achieving Efficient Production Runs.

Gaining Quantity Discounts

Reduce order Costs

Achieve Efficient

Production

Purchasing

Producing

Selling

Firms Hold Inventories

To

Avoid Losses of Sale

Other Importance

Inventory Orders.

Stock Maintenance.

Price Levels.

Count Methods.

Trend Analysis.

Group Members

Allen Jacob V.

Anu James.

Jobin Thomas.

Jasna Jayan.

Megha Aliyas.

Roy Thomas.

Shipla.

THANK YOU.