MANAGEMENT
Seminar taken by
Jagan. P
Suresh Rao
vijayKumar. A
Vinoth. G
INTRODUCTION
MEANING OF INVENTORY:
The meaning of inventory is ‘stock of goods’. In
accounting language it may include:
1.RAW MATERIAL: They are required to carry out
production activities uninterruptedly.
What to purchase
How much to purchase
From where to purchase
Where to store
Objectives Of Inventory Management
To ensure continuous supply of raw material, spares
and finished goods.
1. Stock Levels
2. Safety Stocks
4. Determination of EOQ
5. ABC Analysis
6.VED Analysis
10.Inventory Reports
Techniques of inventory management
2.CARRYING COST
Group-A:
Group-C:
Under this category about 70% of items of
material contribute only 10% of value of
consumption.
VED ANALYSIS:
The VED analysis is used generally for spare parts. The
requirements and urgency of spare parts is different
from that of materials. Spare parts are classified as
vital(V),essential(E),desirable(D).
VITAL SPARE PARTS:
FIFO
LIFO
Average Price Method
Base Stock
Standard Price & Market Price