Inventory includes raw materials, work in progress, finished products, and supplies held in stock. Production and operation managers are responsible for controlling inventory costs and monitoring output. There are different types of demand - independent demand occurs on its own while dependent demand is linked to another product. Inventory control considers the product types, inventory levels, and control systems used. Effective information flow is essential for inventory management systems to balance supply and demand.

1. PRESENTATION ON INVENTORY
ANIL KUMAR
MBA (Pharm.)
Registration no.12PMM 382

2.  Inventory is stores of goods and stock
Manufacturing ,items in inventory are called stock
keeping held at a stock point
Stock keeping items usually are raw materials, work
in process, finished product and supplies
Inventory play a major part in the U.S. economy

3. Cont…
 Production and operation managers are responsible
for controlling costs of operation
 If this investment becomes excessive
 It is easy to believe that service organization do not
such inventory cost eg. electricity
 Operation managers must monitor output compare
actual with planned output and take corrective action
through feedback mechanism

4. TYPES OF DEMAND
Independent-when it occurs independently of
demand for any other product and service eg. demand
for film postage is independent of demand for popcorn
Dependent –when demand for one product is linked
to demand for another product
Vertical dependency
Horizontal dependency

5. INVENTORY CONTROL FACET
Product
Raw
materials
(coal and
fuel oil
Chemicals
such as
hydrogen,
chlorine
Inventory
Water
and
electricity
Serviceoriented

6. CONTROL SYSTEM
Controlling is a process by which some aspect of a
system is modified to achieve a desired change in
system performance example a manufacturer of
luggage
Biological (eg. human body)
Social
Mechanical
Political
Economics

7.  Information flow is essential to a system
 Information flow is an information feedback
loop
control system elementinput
output
sensor
comparator
memory
activator

8. CONCLUSION
 Inventory management is important for
keeping costs down, while meeting
regulations. Supply and demand is a delicate
balance, and inventory management hopes
to ensure that the balance is undisturbed