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Inventory Management PDF Free Download: Inventory management is a very important function of management. It is determines the financial health of balance sheet. Inventory contains the economic value. Inventory is always energetic.

Also See: Research Methodology PDF

Inventory management is required at different areas within a facility or within many areas of a supply network to guide the everyday and planned course of production and stock of materials. Inventory is also known as Raw materials, Work-in-process and Finished goods.

Inventory Management PDF Free Download

Types of Inventory Management

  • Independent Demand
  • Dependant Demand

Techniques of inventory management

Economic Order Quantity

  1. Economic order quantity (EOQ) model
    1. The order size that minimizes total annual cost
  2. Economic production model
  3. Quantity discount model
  4. Inventory Models
  5. ABC Analysis

ABC Classification System

A – Very important

B Mod. Important

C – Least important

  1. Material Requirements Planning
  2. VED Analysis
  • Vital
  • Essential
  • Desirable

Also See: Supply Chain Management PDF

Why Is Inventory Control Important?

  • Avoiding Stockouts
  • Overstock Hazards
  • Working Capital Issues
  • Manufacturer’s Angle

Functions of Inventory

  • To meet anticipated demand
  • To smooth production requirements
  • To decouple operations
  • To protect against stock-outs

Effective Inventory Management

  • A system to keep track of inventory
  • A reliable forecast of demand
  • Knowledge of lead times
  • Reasonable estimates of
    • Holding costs
    • Ordering costs
    • Shortage costs
  • A classification system

Benefits of Inventory

  • Hedge against uncertain demand
  • Hedge against uncertain supply
  • Economize on ordering costs
  • Smoothing

Download: Inventory Management PDF

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