1. INVENTORY & INVENTORY CONTROL
SWARNAM S
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SWARNAM S/UNIT III/ INVENTORY

2. SWARNAM S/UNIT III/ INVENTORY
Inventory - Meaning
Inventory includes raw materials, work-in-progress and finished goods
Inventories in the sense of tangible goods, which are held for sale, in process of production and available readily for consumption
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SWARNAM S/UNIT III/ INVENTORY

3. SWARNAM S/UNIT III/ INVENTORY
Inventory Management
Inventory may be defined as the stock of goods, commodities or other economic resources that are stored or reserved for smooth and efficient running of business affairs.
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SWARNAM S/UNIT III/ INVENTORY

4. COMPONENTS OF INVENTORY
Raw Materials
Work-in-progress
Finished Products
Consumables (buy recurrently paper, pens, toner, files etc..)
Stores and Spares (plant and office cleaning materials like soap, brooms, light, bulbs etc..) purpose of maintenance of inventory
A manufacturing company have higher level of all three kinds of inventories whereas a retailer will have high level of finished goods
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SWARNAM S/UNIT III/ INVENTORY

5. MOTIVES FOR HOLDING INVENTORIES
The Transaction Motive – uninterrupted production
The Precautionary motive - unexpected demand; to meet out the emergencies
The Speculative Motive – price advantage and getting discounts
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SWARNAM S/UNIT III/ INVENTORY

6. Inventory Management - Objectives
To maintain sufficient inventory to meet demand
To avoid overstocking and under stocking
To avoid wastage like theft, leakage and spoilage
To maintain optimum level
To purchase raw materials at bulk to avail price discount
To minimize the inventory cost such as carrying and ordering cost
01/12/2017
SWARNAM S/UNIT III/ INVENTORY

7. SWARNAM S/UNIT III/ INVENTORY
INVENTORY CONTROL
Inventory control refers to “all aspects of managing a company’s inventories: purchasing, shipping, receiving, tracking, warehousing and storage, turnover, and reordering.” 
01/12/2017
SWARNAM S/UNIT III/ INVENTORY

8. SWARNAM S/UNIT III/ INVENTORY
EVALUATION
Components
Motives
Objectives
01/12/2017
SWARNAM S/UNIT III/ INVENTORY