INVENTORY

MANAGEMENT
What Is Inventory Management?

 Inventory management refers to the process of ordering,

storing, and using a company's inventory. These include
the management of raw materials, components, and
finished products, as well as warehousing and processing
such items.
 For companies with complex supply chains and
manufacturing processes, balancing the risks of inventory
gluts and shortages is especially difficult. To achieve these
balances, firms have developed two major methods for
inventory management: just-in-time (JIT) and materials
requirement planning (MRP).
INVENTORY MANAGEMENT
TECHNIQUES
 Set First-In First-Out (FIFO)
 Contingency planning.
 Regular auditing.
 Prioritize with ABC.
FIRST-IN FIRST-OUT (FIFO)

 FIFO is a method of asset management and valuation. It

operates under the assumption that the assets that are produced
or acquired by a company first are sold, used, or disposed of
first. Therefore FIFO Inventory Valuation means, First In
(first items to be produced) First Out (First items to be sold).
Contingency planning
contingency plan should include any event that might disrupt operations.
Here are some specific areas to include in the plan: Natural disasters, such
as hurricanes, fires, and earthquakes. Crises, such as threatening employees
or customers, on-the-job injuries, and worksite accidents.
 REGULAR PLANNING
 An audit is an objective examination and evaluation of the financial
statements of an organization to make sure that the records are a fair and
accurate representation of the transactions they claim to represent. ... The
IRS can perform audits to verify the accuracy of a taxpayer's returns or
other transactions.
 PRIORITIZE WITH ABC
 Covey acknowledges that at times you need to re-prioritize the list as
circumstances change. The classic system for prioritizing a list is
the ABC system. This system assigns each of your tasks on your list a
letter to signify its importance or urgency. “A” is for the most important or
the most urgent.
 In an ABC list,
 “A” tasks are ones that are most urgent and important,
 “B” tasks are important but not as urgent, and
 “C” tasks are neither important nor urgent.
THANK YOU