Definition of Inventory Inventories means the stock of the product of a company and components there of that makes up the product. It includes the raw materials, work in progress and finished goods. It is the physical stock of items a business or production organization kept in hand for the efficient running of business or its production. Inventory management objective Maintaining sufficient stock Ensures that the supply of raw material & finished goods. Ability to meet demands of customers. Preventing Dead Stock or Perishability: To maintain an optimal inventory level. Reducing chances of wastage. Optimizing Storage Cost: Reduces the chances of maintaining excess stock. Requirements can be pre-determined

1. Inventory Management
Overview of Inventory management system.
Submitted By:-
Akshay Junghare-02
Anoop Pillai-06
Apurva Sankhe:-07
Insiya Ghadiali-17
Kareena Seth:- 20
Stessy Fernandes-46

2. Definition of
Inventory
1. Inventories means the stock of the product of a company
and components there of that makes up the product. It
includes the raw materials, work in progress and finished
goods.
2. It is the physical stock of items a business or production
organization kept in hand for the efficient running of
business or its production.

3. Types of Inventory
01
Raw
Material
02
Work In
Progress
Inventory
03
Finished
Goods
04
Maintenance
repair &
Operations
Goods

4. Inventory management objective
Maintaining sufficient stock
 Ensures that the supply of raw material & finished
goods.
 Ability to meet demands of customers.
Preventing Dead Stock or Perishability:
 To maintain an optimal inventory level.
 Reducing chances of wastage.
Optimizing Storage Cost:
 Reduces the chances of maintaining excess stock.
 Requirements can be pre-determined

5. 4. Enhancing Cash Flow:
 Inventory plays an important role in
cash flow of the company.
 Ensures sufficiency of liquid cash.
5. Organised Warehouse:
 To organized fulfilment centre.
 Efficient present and future fulfilment.
 Improved product fulfilment.

6. Accurate Order Fulfilment
Order Deliver
Ease of tracking stock in
the warehouse
01 Order Processed
Avoids inaccurately filled
orders.
02 Accurate inventory
Order fulfilment leads to
customer satisfaction
03 Customer satisfaction

7. Inventory Management Techniques
ABC analysis
.
Reorder point formula
.
Economic order quantity(EOQ)
Just-in-time inventory management
Use for smooth running enterprises
Management Techniques :
FIFO and LIFO
Fast, Slow and Non - Moving

8. Techniques
o Quantity of materials which can be
purchased at minimum cost
o Based on a business’s own
purchase and sales cycles that
varies on a per-product basis.
Identify items that have a heavy
impact on overall inventory cost and
classify them into categories.
Category A
Category B
Category C.
ABC analysis
Reorder point formula
Economic order quantity

9. Techniques
Just-in-time
o Maintains an inventory level
that is at par with production
requirement.
FIFO and LIFO
Fast, Slow and Non Moving
FIFO(First in, First out)
LIFO(Last-in, First-out)
o Inventories are classified
based on the movement.

10. THANK YOU