What is Inventory Control? Definition
1. According to Gordon Carson,
"blogspot.com//search?q=what-is-inventory-meaning-definition">Inventory command is the physical care for where yesteryear the investment inwards materials as well as parts carried inwards stocks is regulated, inside pre-determined limits laid upwards inwards accordance amongst the inventory policy established yesteryear the blogspot.com//search?q=what-is-inventory-meaning-definition">management."
This definition of inventory command is taken from a mass titled 'Production Handbook' published inwards 1958 as well as edited yesteryear Gordon B. Carson.
Definitions of inventory command w.r.t dissimilar perspectives are quoted below.
blogspot.com//search?q=what-is-inventory-meaning-definition">level of management of a company. It requires a strategic determination to last taken for its effective implementation. Its proper implementation is the responsibleness of the shop manager."
4. In an Academic perspective,
"Inventory command is a method to position those stocks of goods, which tin laissez passer the sack last used for the blogspot.com//search?q=what-is-inventory-meaning-definition">production of finished goods. It shall last supported yesteryear a schedule which gives details regarding; opening stock, receipt of raw-materials, number of materials, closing stock, as well as chip generated."
Now let's hash out farther to empathize the important of inventory control.
Meaning of Inventory Control
Inventory command agency to monitor the stock of goods used for production, distribution as well as captive (self) consumption.
For a specific fourth dimension period, stock of goods are placed at unopen to exceptional location. Stock of goods includes raw-materials, function inwards progress, finished goods, packaging, spares, components, consumable items, etc.
Inventory Control agency maintaining the inventory at a desired level. The desired-level keeps on fluctuating equally per the blogspot.com//search?q=what-is-inventory-meaning-definition">demand as well as provide of goods.
The concept or important of inventory command is depicted inwards the diagram.
Following of import points bring the wide important of inventory control:
- Inventory Control mainly focuses on location, storage, recording the quantity, as well as accounting for the amount of inventories.
- It helps to provide inventories to dissimilar departments or units whenever need requisition is raised. Mostly, it supplies inventories to the production department.
- It keeps a tape of inventory issued to the concerned subdivision located at a specific place.
- It provides prompt as well as proper service to all concerned departments or units.
- It besides helps to maintain inventories at lowest costs.
- It bifurcates high-value as well as low-value stock of goods.
- It besides avoids over-stocking as well as under-stocking of raw-materials.
How to Achieve Inventory Control?
The inventory command tin laissez passer the sack last achieved by:
- Purchasing items of the right-quantity, at the right-place as well as at right-time.
- Providing a suitable, secure, as well as sufficient house for storage.
- Developing a proper inventory identification system.
- Maintaining an up-to-date tape keeping.
- Making proper requisition procedures.
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