(ii) The objectives of better sales through improved service to customer; reduction in inventories to reduce size of investment and reducing cost of production by smoother production operations are conflicting with each other. The overstock condition will reduce the other production processes and understock will lead to stoppage of work. 2. This is another major objective of inventory management.
To minimize investment in inventory at minimum level to maximize profitability. The objectives of inventory management … Thus, management is faced with the following conflicting objectives: 1. The main aim of an inventory management system is to keep the stock in such a way that it is neither overstock nor understock. Organization structure. Yet another important objective of using this system is that it makes the picking, packing and shipping items quite easy from a … Other objectives of inventory management … Objectives of Inventory Management 3. Inventory Valuation. Limitations of Inventory Control: (i) Efficient inventory control methods can reduce but cannot eliminate business risk. After determining inventory policy, the next step is to decide the location, … Techniques 4. Reduce losses due to theft, wastage, etc. Definition: Inventory management is an approach for keeping track of the flow of inventory. The main objectives of inventory management are operational and financial. Meaning of Inventory Management 2. The inventory transported between various locations like the warehouse and production area etc and easily tracked with the help of this inventory tracking management system. …
Objectives of Inventory Control in an Organization The basic managerial objectives of inventory control are two-fold : first the avoidance of ova-investment a under-investment in inventories; and second, to provide the right quantity of good standard raw-material to the production department at the right time when it is wanted thereon. Inventory Management Objectives. The operational objectives mean that the materials and spares should be available in sufficient quantity so that work is not disrupted for want of inventory. It starts right from the procurement of goods and its warehousing and continues to the outflow of the raw material or stock to reach the manufacturing units or to the market, respectively. To keep inventory at sufficiently high level to perform production and sales activities smoothly.