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Information @ a Glance

Introduction

  • Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.

  • There are three basic reasons for keeping an inventory:  Time, Uncertainty, Economies of scale .

  • Inventory Management and Inventory Control must be designed to meet the dictates of the marketplace and support the company's strategic plan.

  • The basic building blocks for the Inventory Management system and Inventory Control activities are: Sales Forecasting or Demand, Management, Sales and Operations Planning, Production Planning, Material Requirements Planning, Inventory Reduction.

  • Inventory control is concerned with minimizing the total cost of inventory.

  • The carrying cost of inventory is the cost of maintaining your average inventory investment of inventory in your warehouse, storeroom, stockroom, or other location where you stock raw materials or finished goods.

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