The document discusses inventory, inventory control, and inventory management. It defines inventory as goods available for sale and raw materials, which are important assets. Inventory control involves regulating inventory levels to maximize profits with minimum investment. It is important for lowering costs, fulfilling orders, preventing fraud, and maintaining the right balance of stock. The key difference between inventory control and management is that control involves warehouse operations while management determines stock levels and ensures the right inventory is in the right place. The document also covers types of inventory, benefits of management, and challenges of controlling inventory levels.

1. Operations Management
Submitted By:
Priyanka Mangla
Submitted To:
Ms. Jayati Singh

2. WHAT IS INVENTORY ?
Inventory is the term for the goods available for sale and raw
materials used to produce goods available for sale. Inventory
represents one of the most important assets of a business
because the turnover of inventory represents one of the primary
sources of revenue generation and subsequent earnings for the
company's shareholders.

3. WHAT IS INVENTORY CONTROL?
Inventory control, also known as stock control, involves regulating
and maximizing your company’s inventory. The goal of inventory
control is to maximize profits with minimum inventory investment,
without impacting customer satisfaction levels. Inventory control is
also about knowing where all your stock is and ensuring everything is
accounted for at any given time.

4. WHY IS IT IMPORTANT?
1. Understanding what you have, where it is in your warehouse, and when stock is going in and
out can help lower costs, speed up fulfillment, and prevent fraud.
2. Your company may also rely on inventory control systems to assess your current assets, balance
your accounts, and provide financial reporting.
3. Inventory control is also important to maintaining the right balance of stock in your
warehouses. You don’t want to lose a sale because you didn’t have enough inventory to fill an
order.
4. It will also help you get a better, more real-time understanding of what’s selling and what isn’t.
You also don’t want to have excess inventory taking up space in your warehouses unnecessarily.
5. Too much inventory can trigger profit losses––whether a product expires, gets damaged, or
goes out of season. Key to proper inventory control is a deeper understanding of customer
demand for your products.

5. DIFFERENCE BETWEEN
INVENTORY CONTROL & INVENTORY MANAGEMENT
Inventory control involves warehouse management. This includes:
• Keeping track of the stock that is already in the warehouse. This includes knowing what
products are being stocked and how much of a particular item is available.
• Aspects of warehousing designs, such as knowing where everything is and ensuring that the
products are stored well.
Inventory management, on the other hand, involves:
• Stocking the right amount of inventory
• Paying the right amount for your inventory (Economic Order Quantity)
• Knowing your reorder point
• Ensuring you have the right amount of inventory in the right place

6. Raw
materials
Finished
goods
Consignment
Inventory
Work-in-
progress
inventory
TYPES
OF
INVENTORY

7. BENEFITS OF INVENTORY
MANAGEMENT
1. Achieve efficiency and productivity in operations.
2. Minimize inventory costs and maximize sales & profits.
3. Integrate your entire business.
4. Automation of manual tasks.
5. Maintain customer happiness

8. COMMON INVENTORY CONTROL
CHALLENGES
One of the biggest challenges in inventory
control is to decide how much to order. In
order to avoid obsolescence and
spoilage, inventory forecasting must be
utilized to keep inventory levels low yet
adequate to match customer demands.