Inventory Control
Inventory control is the processes that make the greatest level a company’s use of the inventory of materials. The purpose of inventory control is to produce the maximum profit from the least amount of inventory of material. Inventory control consists procurement, think about and outlook of the material. There are three types of inventory Raw material, in process Goods, finished goods.
Raw Material Availability
Raw Material must be available in sufficient quantity on hand. This will ensure that new production as per demand will be processed in time. So a company may have to make connections between one and only sourcing of goods in order to get suppliers into giving work in just-in-time productions.
Material in the Process
Materials in the producing process are constantly changed from one form to another. Which further gets changed to another form, the inventory of things an outer covering. This can have to do with a wide order of acts, such as using producing units to work on small parts.
Completed Goods Availability
Completed goods able to use. A company is able to charge a higher price of its products it is can safely ship them to customers at once. In this regard, there can be a price reward connected with having high levels of completed goods on hand. Conversely, the price of putting money into too much inventory of materials may be greater than the profits to be gained from doing so.
Evaluate Stock
Keeping materials sitting on a shelf and not using them is NOT an example of good inventory of things control. This is particularly important with polished and tasteful form goods, but it is important with any goods that are turning at a lower rate than the mean amount of goods turns for that one business.
Record and Controls
Proper Record and regular reviews of the inventory can trace out slow moving of stock and find potential selling items which are very necessary for proper inventory management. It is the responsibility of a manager to conduct reviews for the purpose of making correct decisions about the disposal of and replacement of different parts of inventory.For example, a company cannot earn profit in the absence of sales of goods
Outsourcing
Inventory control also consists decisions to farm out some activities to suppliers, thereby shifting the inventory control burden to the suppliers (however, generally in exchange for a decreased level of profitability).
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