Inventory Managment

Inventory Management

SANJAY VARDANI

4/7/2010

Accman Institute of Mangement
Acknowledgement Letter

Dear Sir/Madam,

Subject: Project on Inventory Management,

I deeply acknowledge the support of Prof. Subir Guha who initially helped and motivated us to embark on this strenuous .I would like to give thanks to providing me an opportunity to make this project.

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 Inventory :-
An inventory can be defined as a stock of goods which is held for the purpose of future production or sales. The stock of goods may be kept in the following forms:
 Raw Materials
 Partly finished goods
 Finished goods
 Spare parts etc.
OR
1. A stock of items held to meet future demand
2. Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.
 Variables in an Inventory Problem:
The variables associated with the inventory problems are classified into two categories.
a. The Controlled variables
b. The uncontrolled variables

a) The variables that may be controlled, separately or in combination are following:
1. The quantity acquired – By purchase, production, or some other means. The decision maker may have a control over the production or purchase level.
2. The frequency of timing of acquisition – The decision maker may have control over how often or when the inventory should be replenished.
3. The stage of completion of stocked items – The decision maker may have a control over the stage at which the unfinished items be held so that there is no delay in supplying customers.
b) The uncontrolled variables – The variable that may not be controlled in an inventory problem are divisible into cost variables and others.

 Inventory management:
1. Inventory management is the branch of