Techniques of Inventory Management
Inventory management consists of effective control and administration of inventories. Inventory control refers to a system which ensures supply of required quantity and quality of inventories at the required time and at the same time prevent unnecessary investment in inventories. It needs the following important techniques.
Inventory management techniques may be classified into various types:
(1). TECHNIQUES BASED ON OREDER QUANTITY:
They include the following:
i. Determination Of Stock Level
ii. Determination of stock
iii. Economic Order Quantity (EOQ)
(2). TECHNIQUES BASED ON THE CLASSIFICATION OF STOCK:
They include the following:
i. ABC Analysis
ii. VED Analysis
iii. HML Analysis
iv. Aging Schedule
(3). TECHNIQUES BASED ON STOCK RECORDS:
They include the following:
i. Inventory Report
ii. Inventorey Budget
Inventory management consists of effective control and administration of inventories. Inventory control refers to a system which ensures supply of required quantity and quality of inventories at the required time and at the same time prevent unnecessary investment in inventories. It needs the following important techniques.
Inventory management techniques may be classified into various types:
[Post Image Courtesy of Stuart Miles at FreeDigitalPhotos.net]
(1). TECHNIQUES BASED ON OREDER QUANTITY:
They include the following:
i. Determination Of Stock Level
ii. Determination of stock
iii. Economic Order Quantity (EOQ)
(2). TECHNIQUES BASED ON THE CLASSIFICATION OF STOCK:
They include the following:
i. ABC Analysis
ii. VED Analysis
iii. HML Analysis
iv. Aging Schedule
(3). TECHNIQUES BASED ON STOCK RECORDS:
They include the following:
i. Inventory Report
ii. Inventorey Budget
Techniques of Inventory Management
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