What Is Inventory Control? Definition Pregnant Achievement

What is Inventory Control? Definition

1. According to Gordon Carson,

"Inventory command is the physical care for where past times the investment inwards materials as well as parts carried inwards stocks is regulated, inside pre-determined limits educate inwards accordance amongst the inventory policy established past times the management."

This definition of inventory command is taken from a mass titled 'Production Handbook' published inwards 1958 as well as edited past times Gordon B. Carson.

Definitions of inventory command w.r.t dissimilar perspectives are quoted below.

Image credits © Prof. Mudit Katyani.

2. In General sense,

"Inventory command is a method where all stocks of goods are properly as well as promptly issued, accounted, as well as preserved inwards the best involvement of an entity that handles its inventory."

3. In terms of Business,

"Inventory command is a method designed past times the overstep level of management of a company. It requires a strategic determination to endure taken for its effective implementation. Its proper implementation is the responsibleness of the shop manager."

4. In an Academic perspective,

"Inventory command is a method to position those stocks of goods, which tin endure used for the production of finished goods. It shall endure supported past times a schedule which gives details regarding; opening stock, receipt of raw-materials, number of materials, closing stock, as well as flake generated."

Now let's utter over farther to sympathize the pregnant of inventory control.

Meaning of Inventory Control

Inventory command agency to monitor the stock of goods used for production, distribution as well as captive (self) consumption.

For a specific fourth dimension period, stock of goods are placed at about special location. Stock of goods includes raw-materials, run inwards progress, finished goods, packaging, spares, components, consumable items, etc.

Inventory Control agency maintaining the inventory at a desired level. The desired-level keeps on fluctuating every bit per the demand as well as furnish of goods.

The concept or pregnant of inventory command is depicted inwards the diagram.

Following of import points bring the wide pregnant of inventory control:

1. Inventory Control mainly focuses on location, storage, recording the quantity, as well as accounting for the amount of inventories.
2. It helps to furnish inventories to dissimilar departments or units whenever need requisition is raised. Mostly, it supplies inventories to the production department.
3. It keeps a tape of inventory issued to the concerned subdivision located at a specific place.
4. It provides prompt as well as proper service to all concerned departments or units.
5. It besides helps to maintain inventories at lowest costs.
6. It bifurcates high-value as well as low-value stock of goods.
7. It besides avoids over-stocking as well as under-stocking of raw-materials.

How to Achieve Inventory Control?

The inventory command tin endure achieved by:

1. Purchasing items of the right-quantity, at the right-place as well as at right-time.
2. Providing a suitable, secure, as well as sufficient house for storage.
3. Developing a proper inventory identification system.
4. Maintaining an up-to-date tape keeping.
5. Making proper requisition procedures.