This document provides information about inventory management and control systems. It discusses classifications like ABC analysis and economic order quantity. The case study focuses on inventory practices at SIWA Industries, which uses just-in-time for major parts and ABC analysis for small parts. A SWOT analysis finds strengths in continuous production and efficient funds use, while weaknesses include low quality materials and extra investment. Recommendations include removing inventory classifications and matching investment to production needs.

2. Financial Management
Topic:
Inventory Management
and Control System
Presented To: Mr.Rizwan Hamid
Presented By: M.Hashaam
Roll No. : AM552381
Class : MBA (B&F) 3rd Semester
Allama Iqbal Open University
ASC; Punjab Computer College, Garhi shao LHR

3. Acknowledgment
First of all thanks of Allah who is most
beneficent and the most merciful
whose blessings are abundant and
favors are unlimited.
It is my pleasure to acknowledge the
guidance and support of my subject
Teacher: Mr. Rizwan Hamid for her
endless guidance.

4. An Abstract
Inventories form a link between the
production and sale of a product.
Inventories give the firm flexibility in
its purchasing, production scheduling,
and servicing of customer demands.
Financial manager must be familiar with
ways to control inventories effectively.
In SIWA Industries(pvt)Ltd. Financial
manager invested capital effeciently in
inventories.

5. Introduction to Inventory
Management and Control System
Inventories form a link between the
production and sale of a product. A
manufacturing company must maintain a
certain amount of inventory. Raw-
Material inventory gives the firm
flexibility in its purchasing. Without it,
the firm must exist on hand-to-mouth
basis, buying raw materials strictly in
keeping with its production schedule.
Large inventories allow efficient servicing
of customer demands.

6. Classification
What to Control?
ABC method of inventory control:
Method that controls expensive
inventory items more closely
than less expensive items.

7. Economic Order Quantity
How Much to Order?
EOQ is used to determine the
optimal order quantity for a
particular item of inventory,
given its forecats usage,
odering cost, and carrying
cost.

8. Order Point
When to Order?
The quantity to which inventory
must fall in order to signal
that an order must be placed
to replace an item.
OP= (Lead Time Daily usage)+
Safety Stock

9. Just-in-Time
The JIT management philosophy
focuses on:
o Pulling inventory on an “as-needed”
basis
o Pushing inventory on an “as-produced”
basis.

10. Inventory and the Financial
Manager
Not the direct operating
responsibility
Investment of funds in inventory
Familiar with ways to control
inventories
Effective Policies

11. Case Study
Inventory Management and Control
System in
SIWA Industries (PVT) Ltd.

12. Introduction of SIWA
Industries (PVT) Ltd.
Company information
SIWA Industries (Pvt) Ltd Was established
in 2006 . We is an exporter of Pakistan
Motorcycles products. We have exported
products to many other countries, such as
Eastern Asia. We are absolutely capable of
meeting various demands from the market.
Importantly, to put quality consisting of
product quality and service quality in the first
place is our business! We hope that we can
cooperate with more customers from all over
the world and sincerely welcome all of you!

13. Inventory Management and Control
System in SIWA Industries (PVT) Ltd.
JUST-IN-TIME
Main parts like Engine’s, Body,
Fiber etc.
ABC Method
All small and other part’s.

14. SWOT Analysis

15. Strengths
Continously Production
Effeciently use of Fund’s
No shortage of Material

16. Weaknesses
Low Quality Material
Extra Investment

17. Opportunities
oIncrease in Production
oEfficient Financing

18. Threats
Increase in Rate of
Material
Late Delivery

19. Conclusion
I conclude that in SIWA
Industrie’s (PVT) Ltd. Inventory
Management and Control system
is working affectively.
Manager use better ways to invest
in inventory.

20. Recommendations
I will recommend that
Classification of Inventory should
be remove because low quality
material usage decrease
efficiency.
Investment should be according to
the requirement of production.

21. Thank You