INTRODUCTION
The literary meaning of the word inventory is stock of
goods.
Every enterprise needs inventory for smooth r...
The investment in inventories constitutes the most
significant part of current assets in most of the
undertakings. Thus i...
TYPES OF INVENTORIES
RAW MATERIALS
WORK IN PROGRESS
FINISHED GOODS
PURPOSE OF HOLDING INVENTORIES
Transaction motive: which facilitates continuous
production and timely execution of sales ...
MAIN OBJECTIVES ARE AS FOLLOWS
To ensure continous supply of materials,spares
and finished goods.
To avoid both over-sto...
Risk and cost associated with inventories
1. Price Decline
2. Product deterioration
3. Obsolescence
TOOLS AND TECHNIQUES OF INVENTORY
MANAGEMENT
Determination of stock levels.
Determination of safety stocks.
Determinati...
Upcoming SlideShare
Loading in...5
×

Inventory mgt,s p k

92

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
92
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Inventory mgt,s p k"

  1. 1. INTRODUCTION The literary meaning of the word inventory is stock of goods. Every enterprise needs inventory for smooth running of its activities It serves as a link between production and distribution processes. The unforeseen fluctuations in demand and supply of goods necessitate the need for inventory.
  2. 2. The investment in inventories constitutes the most significant part of current assets in most of the undertakings. Thus it is very essential to have proper control and mgt of inventory. The purpose of inventory mgt is to ensure availability of materials in sufficient qty as and when required and also minimise investment in inventories.
  3. 3. TYPES OF INVENTORIES RAW MATERIALS WORK IN PROGRESS FINISHED GOODS
  4. 4. PURPOSE OF HOLDING INVENTORIES Transaction motive: which facilitates continuous production and timely execution of sales orders. Precautionary motive: for meeting unpredictable changes in demand and supply of materials Speculative motive: for taking advantage of price fluctuations , saving in re-ordering costs and qty discounts etc
  5. 5. MAIN OBJECTIVES ARE AS FOLLOWS To ensure continous supply of materials,spares and finished goods. To avoid both over-stocking and under-stocking of inventory. To maintain investments in inventroies at the optimum level as required by the operational and sales activitites. To keep material cost under control. To minimise losses through deterioration,pilferage,wasteages and damages.
  6. 6. Risk and cost associated with inventories 1. Price Decline 2. Product deterioration 3. Obsolescence
  7. 7. TOOLS AND TECHNIQUES OF INVENTORY MANAGEMENT Determination of stock levels. Determination of safety stocks. Determination of Economic Order Quantity. ABC analysis. VED analysis. Inventory turn over ratios. Age schedule of inventories. Just in time (JIT) inventory system
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×