JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

KAKINADA

SCHOOL OF MANAGEMENT STUDIES

OPERATIONS MANAGEMENT
INVENTORY CONTROL
Presented by
E V S S G GANESH
19021E0063
 CONCEPT OF INVENTORY CONTROL
The term inventory control is used to cover functions which are
quite different and are related to one another only in that they
both require the maintenance of adequate records of inventory as
well as receipt and issue corresponding to these two functions. It
is interpreted as accounting control and operating control.
Accounting control of inventories is concerned with the proper
recording of the receipt and consumption of the material as well
as the flow of goods through the plant into finished stock and
eventually to customers.
 IMPORTANCE OF INVENTORY CONTROL
The aim of holding inventories is to allow the firm to separate the
process of purchasing, manufac­turing, and marketing of its primary
products. Inventories are a component of the firm’s working capital
and as such represent a current account.
Inventories are also viewed as a source of near all cash. The
purpose is to achieve efficiencies in areas where costs are involved.
The scientific inventory control results in the reduction of stocks on
the one hand and substantial decline in critical shortages on the
other.
 METHODS OF INVENTORY CONTROL
Inventory control is concerned with the periodic review of
materials in stock to detect those not required for planned
production or for other purposes not required and whether
obsolete materials continue to occupy storage space until
removed from stores.
The inventory control methods give us a means for
determining an optimal level of inventory as well as how much
should be ordered and when. There are several methods
suggested for inventory controls
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