Inventory Management Essay

Orca Kim N.



INVENTORY MANAGEMENT AND CONTROL concerns many managers of agricultural marketing and supply businesses, whether they happen to be retail, wholesale, or services oriented. The importance of a supervisor to agricultural marketing and source business is determined by his ability to manage stocks effectively. The overall cost of maintaining the desired inventory level should be held down to a reasonable figure, but the inventory must also end up being large enough to allow the company to effectively items the products and services it sells. In case the manager will not control his inventories to achieve both of these objectives, the business might not be able to grow or even to outlive against competition. The information with this circular suggests to the administrator ways on how best to perform four things: * How you can control inventories.

2. How to visualize the products on hand costs to be included in determining, How much stocks are charging the company. * How to decide the level of inventory that is the majority of profitable. 5. How to figure out how much to order and how often to buy. Controlling Arrays

Purchase methodically. Place requests for supplies long enough in advance so there will not become a shortage among ordering and delivery. Area inventory turn into relatively low before reordering but maintain enough on hand to meet current needs. There are costs associated with keeping large stocks. Likewise, there are costs if you deplete your stock. Don't hold " dead” lines or products.

Keep track of inventories.

The moment stock is definitely received, be sure that what was ordered was provided. Make sure that the quantity received can be added to the inventory. Physical inventories ought to be taken often to find out which usually items are certainly not selling so you can discontinue these people as quickly as possible, to identify shortages in merchandise that could possibly be due to fraud, to note degeneration that may take place, and to determine when to...

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