What Is Inventory Control? Definition Important Achievement

What is Inventory Control? Definition

1. According to Gordon Carson,

"Inventory command is the physical care for where past times the investment inwards materials together with parts carried inwards stocks is regulated, inside pre-determined limits railroad train inwards accordance amongst the inventory policy established past times the management."

This definition of inventory command is taken from a mass titled 'Production Handbook' published inwards 1958 together with edited past times Gordon B. Carson.

Definitions of inventory command w.r.t dissimilar perspectives are quoted below.

level of management of a company. It requires a strategic conclusion to live on 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 live on used for the production of finished goods. It shall live on supported past times a schedule which gives details regarding; opening stock, receipt of raw-materials, number of materials, closing stock, together with chip generated."

Now let's beak over farther to empathise the important of inventory control.

Meaning of Inventory Control

Inventory command way to monitor the stock of goods used for production, distribution together with captive (self) consumption.

For a specific fourth dimension period, stock of goods are placed at to a greater extent than or less exceptional location. Stock of goods includes raw-materials, function inwards progress, finished goods, packaging, spares, components, consumable items, etc.

Inventory Control way maintaining the inventory at a desired level. The desired-level keeps on fluctuating equally per the demand together with render 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:

1. Inventory Control mainly focuses on location, storage, recording the quantity, together with accounting for the amount of inventories.
2. It helps to render inventories to dissimilar departments or units whenever need requisition is raised. Mostly, it supplies inventories to the production department.
3. It keeps a tape of inventory issued to the concerned subdivision located at a specific place.
4. It provides prompt together with proper service to all concerned departments or units.
5. It besides helps to maintain inventories at lowest costs.
6. It bifurcates high-value together with low-value stock of goods.
7. It besides avoids over-stocking together with under-stocking of raw-materials.

How to Achieve Inventory Control?

The inventory command tin live on achieved by:

1. Purchasing items of the right-quantity, at the right-place together with at right-time.
2. Providing a suitable, secure, together with sufficient house for storage.
3. Developing a proper inventory identification system.
4. Maintaining an up-to-date tape keeping.
5. Making proper requisition procedures.