Inventory management involves properly planning and controlling a company's inventory levels. There are several types of inventory including raw materials, work in process, and finished goods. Effective inventory management aims to maintain sufficient stock while minimizing unnecessary costs through proper purchasing, storage, and accounting. The objectives are to meet demand, control costs, and identify opportunities while avoiding overstocking or understocking situations. Around 90% of working capital is typically invested in inventory, so it is important for companies to give proper attention to managing inventory efficiently.

1. INVENTORY MANAGEMENT
Group 1.

2. INVENTORY
Defined as the goods held for eventual resale
by the firm.
Inventories may be durable or non-durable,
perishable or non- perishable, valuable or in-
expensive.

3. Inventory may be defined as “quantity of
goods, commodities or other economic
resources that are stored or reserved at any
given point of time for the purpose of smooth
and efficient running of business affairs.”

4. KINDS OF INVENTORY
Raw Materials
Goods in Process
Finished Goods
Spare parts and Components
Repairs & Maintenance

5. TYPES
Mainly Classified Into
Direct Inventory.
Indirect Inventory.

6. According to the Nature Of Materials
Production Inventory
MRO Inventory(Maintenances, Repair, Operating)
In-Process Inventory
Finished Goods Inventory

7. INVENTORY MANAGEMENT
90% part of working capital is invested in
inventories.
Give proper attention to inventory
Proper planning of
purchasing, handling, storing and accounting

8. EFFICIENT MANAGEMENT
What to purchase.
How to purchase.
From where to purchase.
Where to store.

9. PURPOSE
Over-Stocking
A reduction of liquidity and starving of other
production process.
Under-Stocking
Result in the stoppage of work.

10. Objectives
Sufficient Inventory.
Minimizing Unnecessary Capital.
Maintaining Production.
Minimize Wastes and Losses.

11. Meet Demand.
Control Costs.
Identify Opportunities.
Storage of Items.

12. Other objectives
To ensure continuous supply of materials.
To avoid both over-stocking and under-stocking of
inventory.
To maintain at the optimum level.
To keep material cost under control.
To eliminate duplication.
To minimise losses.
To design proper organization.
To ensure right quality goods at reasonable prices.
To facilitate furnishing of data.

13. IMPORTANCE
Avoiding Losses of Sales.
Gaining Quantity Discounts.
Reducing Order Costs.
Achieving Efficient Production Runs.

14. Gaining
Quantity
Discounts
Reduce order
Costs
Achieve
Efficient
Production
Purchasing
Producing
Selling
Firms Hold
Inventories
To
Avoid Losses
of Sale

15. Other Importance
Inventory Orders.
Stock Maintenance.
Price Levels.
Count Methods.
Trend Analysis.

16. Group Members
Allen Jacob V.
Anu James.
Jobin Thomas.
Jasna Jayan.
Megha Aliyas.
Roy Thomas.
Shipla.

17. THANK YOU.