Explain inventory control, Operation Management

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Explain inventory control.

Inventory Control- its importance and scope: Inventory control is the scientific way of finding out how much stock  be maintained so as to meet the production demands and be capable to give right type of material at right time in the right quantities and at competitive prices.

It is concerned with achieving an optimum balance among two objectives that are:-

  • To minimise investment in inventory because it implies money kept in store room.
  • To maximize the facility levels to the customers firm and its own departments.

A good inventory control will intend to:

a) Procure material of fine quality in time

b) Not to see shortage of material 

c) Ignore delay in production schedules

d) Get production targets

e)  Acquire delivery dates accurately  

f)  Help industry to make its reputation and keep better customer relations.


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