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INVENTORY MANAGEMENT
REASONS FOR KEEPING INVENTORY
 TIME
 SEASONAL DEMAND
 UNCERTAINITY
 ECONOMIES OF SCALE
 APPRECIATION INVALUE
 OBSOLE...
TERMS USED IN INVENTORY
 BUFFER STOCK
 REORDER LEVEL
 CYCLE STOCK
 DE-COUPLING
 ANTICIPATION STOCK
 PIPELINE STOCK
INVENTORY EXAMPLES
 RAW MATERIAL
 FINISHED GOOD
 WORK IN PROGRESS
 GOODS FOR SALE
 STOCKS INTRANSIT
 CONSIGNMENT STO...
COSTS ASSOCIATED WITH INVENTORY
 ORDERING COST
 SETUP COST
 HOLDING COST
 SHORTAGE COST
INVENTORY CONTROL
Control of inventory, which typically represents 45% to 90% of all expenses
for business, is needed to e...
INVENTORY CONTROL
Inventory control involves the procurement, care and disposition of materials.
There are three kinds of ...
REASONS FOR KEEPING INVENTORY
 Helps balance the stock as to value, size, color, style, and price line in proportion
to d...
INVENTORY CONTROL SYSTEMS
 THE EYE BALL SYSTEM
 RESERVE STOCK OR BROWN BAG SYSTEM
 PERPETUAL INVENTORY CONTROL SYSTEM
INVENTORY CONTROL RECORDS
 PERPETUAL INVENTORY CONTROL RECORDS
 OUT OF STOCK SHEETS
 OPENTO BUY RECORDS
 PURCHASE ORDE...
CONTROLLING INVENTORY
 INVENTORY PLANNING
 ESTABLISH ORDER CYCLES
 BALANCE INVENTORY LEVELS
 REVIEW STOCKS
 FOLLOW UP...
CONCLUSION
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Inventory management

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Inventory Management guides the success or failure of the Organization with out any aspect of its size of operations.
Inventory Management is about 45-90% of the organziation success role.

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Inventory management

  1. 1. INVENTORY MANAGEMENT
  2. 2. REASONS FOR KEEPING INVENTORY  TIME  SEASONAL DEMAND  UNCERTAINITY  ECONOMIES OF SCALE  APPRECIATION INVALUE  OBSOLESCENCE  CAPITAL INVESTMENT  SPACE USAGE  COMPLICATED INVENTORY CONTROL SYSTEM
  3. 3. TERMS USED IN INVENTORY  BUFFER STOCK  REORDER LEVEL  CYCLE STOCK  DE-COUPLING  ANTICIPATION STOCK  PIPELINE STOCK
  4. 4. INVENTORY EXAMPLES  RAW MATERIAL  FINISHED GOOD  WORK IN PROGRESS  GOODS FOR SALE  STOCKS INTRANSIT  CONSIGNMENT STOCKS  MAINTENANCE STOCK
  5. 5. COSTS ASSOCIATED WITH INVENTORY  ORDERING COST  SETUP COST  HOLDING COST  SHORTAGE COST
  6. 6. INVENTORY CONTROL Control of inventory, which typically represents 45% to 90% of all expenses for business, is needed to ensure that the business has the right goods on hand to avoid stock-outs, to prevent shrinkage (spoilage/theft), and to provide proper accounting
  7. 7. INVENTORY CONTROL Inventory control involves the procurement, care and disposition of materials. There are three kinds of inventory that are of concern to managers:  RAW MATERIALS  IN PROCESS OR SEMI FINISHED GOODS  FINISHED GOODS
  8. 8. REASONS FOR KEEPING INVENTORY  Helps balance the stock as to value, size, color, style, and price line in proportion to demand or sales trends.  Help plan the winners as well as move slow sellers.  Helps secure the best rate of stock turnover for each item.  Helps reduce expenses and markdowns.  Helps maintain a business reputation for always having new, fresh merchandise in wanted sizes and colors.
  9. 9. INVENTORY CONTROL SYSTEMS  THE EYE BALL SYSTEM  RESERVE STOCK OR BROWN BAG SYSTEM  PERPETUAL INVENTORY CONTROL SYSTEM
  10. 10. INVENTORY CONTROL RECORDS  PERPETUAL INVENTORY CONTROL RECORDS  OUT OF STOCK SHEETS  OPENTO BUY RECORDS  PURCHASE ORDER FILES  SUPPLIER FILES  RETURNED GOODS FILE  PRICE BOOK
  11. 11. CONTROLLING INVENTORY  INVENTORY PLANNING  ESTABLISH ORDER CYCLES  BALANCE INVENTORY LEVELS  REVIEW STOCKS  FOLLOW UP & CONTROL
  12. 12. CONCLUSION

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