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Q. Show the Objectives of Inventory Management?
Objectives of Inventory Management- The objectives of Inventory Management are:
To maintain a adequate large size of inventory to get together the demand of finished goods and to meet the demand of raw material by production department.
(ii) To remain the investment in inventory at minimum level by efficiently organizing the purchase and sales operations.
(iii) To maintain adequate inventory of raw materials in period of short supply.
(iv) To minimize the carrying cost of inventory namely cost of godown and insurance expenses etc.
(v) To control investment in inventory and keep it at an optimum level. Tools and Techniques of Inventory Management :- Effective inventory management requires an effective control system for inventories. A proper inventory control not only helps in solving the problems of liquidity but also increases profits and causes substantial reduction in the working capital of the concern.
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