is a supervision of the supply and storage and accessibility of items in order to insure anadequate supply without excessive oversupply. It can also be referred as internal control - an accounting procedure or system designed to promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud and error etc. Inventory is defined as itemized list of goods with their estimated worth ,specifically annual account of stock taken in any business. Control is defined as an act of exercise directing,guiding or retaining power over. INVENTORY CONTROL It is primarily concerned with the size and the value of the goods/products in the stock.
MAIN OBJECTIVES OF THE INVENTORY CONTROL
# Protection against fluctuation in demand.
#Better use of resources,especially the finance
#Control of the stock volume.
#Control of the stock distribution
#Balanced stock of different products.
#Maximum investments in inventory
#To decrease the wastage and the surplus and maintain optimum balance
IMPORTANCE OF INVENTORY CONROL
1.Major part of finance is locked in Inventory.If inventory is effectively controlled profit can be earned. 2.Wastage and theft of materials can be reduced.
3.Men ,machine and materials are properly utilized.
4. .To gain economics in purchasing
Major part finance is locked in Inventory.If Inventory is effectively controlled profit can be earned.
Customer service is improved if inventories are raised to a very high level and production schedules are kept flexible to meet the changing demands.
The factors affecting inventory control policy of a firm
#Demand and supply of the items.
#Credit facility with the suppliers.
TECHNIQUES OF INVENTORY CONTROL
a)There are many techniques by which the inventory of an enterprise is controlled at the optimum...