Inventory management

Type :

Term papers

Pages :

9 pages

Format :

.doc

Published date :

06/15/2009

Category :

Business & market

Sub category :

Management

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Summary :

Introduction
Chapter 1
1. Meaning and definition of inventory
2. The principal type of inventories are
3. Need for inventories
4. Advantages of holding inventory
5. Avoiding loss of sales
6. Availing quantity discounts
7. Reducing ordering costs
8. Achieving efficient production runs
9. Functions of inventories
Chapter 2
1. Management of inventory theory and analysis
2. Definition of inventory:
3. Importance of inventory management
4. Objectives of inventory management
5. What is 'inventory management'?
6. Inventory control
7. Inventory control techniques
8. Economic order quantity
9. Approaches of EOQ
10. Reorder point:
11. ABC analysis
12. XYZ analysis
Other analysis methods
1. IUC analysis
2. VED analysis
3. FSN analysis
Safety stock
Methods of inventory costing/pricing of meterial issued
1. First in first out
2. Average cost method
3. Last in first out
4. Specific identification / actual cost method
5. Base stock prices method
6. Standard price method
7. Replacement / market price method
Bibliography

Abstract

Any stock that a firm keeps to meet its future requirement of production and sales is called "inventory". The basic reason for holding inventory is to keep up to the production activities unhampered. It is neither physically possible nor economically justifiable to wait for the stock to arrive at the time when they are actually required. Therefore, keeping of inventory is a must for the efficient working of a business unit.

Raw materials represent goods kept by a manufacturing firm prior to their being utilized in the production process. Supplies generally include tools and consumables which are consumed in the production of goods and services.

Goods in process represent the semi-finished goods; they include those materials that have been committed to production process but have not yet been converted into finished goods.

Finished goods are completed goods awaiting sale in a manufacturing concern; they are the final output of the production process.

The nature of inventory depends upon the type of activity carried on. In the case of a manufacturing unit, inventory will generally include all types of inventories mentioned above, while in the case of a trading concern, it will comprise only finished goods or stock-in-trade owned by it for sale to customers in the normal course of business. inventory needs proper control as it is one of the largest assets of a business.