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Basic Inventory Control 5



 

Basic Inventory Control 5

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Basic Inventory Control 5 Ranking & Summary

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User Review: 0 (0 times)
File size: 5.07MB
Platform: Windows XP, 2000, 98, Me, NT
License: Shareware
Price: $99.00
Downloads: 563
Date added: 2008-05-07

Basic Inventory Control 5 description

Overview
Why Inventory Control?
Inventory control is a process by which an organization keeps track of its product counts and ensures physical product counts match what is recorded in its books. From a financial standpoint, inventory is the most valuable asset of an organization engaged in buying, selling, manufacturing or otherwise handling of tangible goods. For many organizations, proper management of inventory is pivotal to customer satisfaction and long-term success. The following are few of the challenges faced by organizations in the realm of inventory control.
Challenges of Inventory Control
Companies usually handle a large number of products. Units of products move rapidly as new orders are received, products are returned, products are drop-shipped, out of stock products are backordered or products are earmarked for a delayed shipment. The sheer volume of items makes the task of monitoring inventory complicated.
In order to minimize cash tied up in inventory and to reduce inventory handling costs, an organization must know its current inventory count accurately at all times. This information is essential in knowing when to re-order products that are out of stock or are about to go out of stock. There are significant costs associated with carrying too much inventory such as cash tied up in slow moving inventory, inventory storage and handling costs, spoilage and obsolescence. On the other hand, carrying too few units could result in stock-outs and loss of sales or production stalls. The ultimate goal is not to order too many or too few goods. The more accurate the inventory count, the better an organization is in a position to order an Economic Order Quantity (EOQ) that minimizes inventory costs and helps negotiate best price discounts.....

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