(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. Once the system automated then there is a great deal of time that saves. The identification in such a case can make through serial numbers, barcodes, etc. Content Filtrations 6.

All this helps in analyzing such data and controlling the inventory levels, which in turn leads to maximize the usage of the warehouse space.

By lead time is meant the time that lapses between the raising of an indent by the stores and the receipt of materials by them.

Lead time is of fundamental importance in determining inventory levels.

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Although the system renders the end number of advantages to the business, along with the positive points there are few negative points as well.

This easy tracking of the product helps a great deal in saving the time and energy of the person in charge of finding it and the same can invest somewhere else and productivity can reap. Systematic management and control of inventory for all the items is a challenging job.

Big time businesses can cover up the cost or the one time investment in some time but in the case of small or medium-sized businesses, it is at times not feasible to maintain such software.


Clear cut accountability should be fixed at various levels of the organisation. This automation, in turn, helps in increasing the overall efficiency of the organization. With this system in function, the tracking can be easily done. Yet another important objective of using this system is that it makes the picking, packing and shipping items quite easy from a … These disadvantages of inventory management can be listed as under: Extremely beneficial in many aspects, this management software is available in the market at a high cost. are to be formulated under the scientific system of inventory control. Scientific inventory control provides the following benefits: 1.

Plagiarism Prevention 4. It facilitates regular and timely supply to customers through adequate stocks of finished products. 5.

In the case of obsolescence, damage, deterioration, etc., the inventory management system helps a great deal in minimizing the losses as the stock/ inventory which maintain in the stores is according to the requirement or the trend.

6.

To maintain the overall investment at the lowest level, consistent with operating requirements. Also, it helps in tracking orders, sales, and deliveries. First of all, the policies of investment procurement, storage, handling, shortage and stock-outs, deterioration obsolescence etc.

Inventory control is a system of ordering based on the maintenance of the stock in a store using a re-order rule based on the stock level. The following are a few of the features of an inventory management system.

And to maintain the inventory in the best possible manner, organizations use inventory management software. Proper groups can form of the products which sold together or the ones for which the demand is high, they can store in large quantities as compared to the ones for which the demand is low.
7. Again, determination of buffer stock reserve stock is included in the management of inventory.

to its users as per their requirements at right time and at right price.

To ensure perpetual inventory control so that materials shown in stock ledgers should be actually lying in the stores.

Optimization of resources is yet another benefit of the inventory management software. The inventory management program helps the organization in many ways. (i) To minimise capital investment in inventory by eliminating excessive stocks; (ii) To ensure availability of needed inventory for uninterrupted production and for meeting consumer demand; (iii) To provide a scientific basis for planning of inventory needs; (iv) To tiding over the demand fluctuations by maintaining reasonable safety stock; (v) To minimise risk of loss due to obsolescence, deterioration, etc.

To ensure right quality goods at reasonable prices. Although the use of an inventory management system makes handling the inventory quite easy but learning how to operate it is quite a task. The objective or purpose behind installing an inventory management system in an organization can sum up as under: The above mentioned are a few best ways to explain the objectives of inventory management. So, the determination of E.O.Q. The system makes sure that there is no interruption in the production process due to the shortage of raw materials.

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Hence, with this system in use, many kinds of risks restricted but fail to make the entire process risk proof.

Since the user rights for this system can restrict, the authorized person/manager can grant suitable/limited rights to the other employees or the subordinates while accessing the data.

The system helps in controlling many risks but the fear of facing and encountering many others is still open. It will facilitate the movement of materials and thus minimize he storage and handling cost of stores. This, in turn, helps in attaching the cost to the total cost of the services. But once successfully installed and training completed, it can prove to be a blessing for the business and it helps a great deal in the smooth operation.

This system helps in facilitating the business with scheduling the production; it helps in avoiding a shortage of materials and also helps in keeping away the duplicate ordering. Comprised of many components, the inventory management system makes handling the inventories an easy and simpler task.

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This kind of management helps the wholesalers, distributors, retailers, etc in organizing their warehouses.

Inventory Control: it’s Objectives, Advantages and Limitations! All of these features of the inventory management system make it one of the most important systems which should integrate within any business for better productivity and more efficient results.

It helps a lot in maintaining the inventory in adequate quantity and supplying the same at desired timings.

An adequate quantity of stock maintains which leads to a smooth production procedure. 3. The present concept of inventories has necessitated the use of scientific techniques in the management of inventories known as inventory control. Prohibited Content 3. In both the conditions, due steps take and the needful is done. Stores Organization activities are arranged in such a manner that the cost of bringing in the storehouse and issuing from the storehouse of the various stores, will minimize the storage and material handling cost of stores. The system raises an alarm in the case where the inventory drops down a specific threshold limit or exceeds over and above the prescribed limit. Owing to the calculations for maintaining stocks, the fluctuations occurring in the demand of the inventory can be managed as there is maintained a safety stock all the time within the organization. Likewise, proper arrangements can make regarding the inventory and the warehouse can organize in an optimum manner.

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.

Although the management system helps the business in eliminating many kinds of risk, even after using the system, the business is open to many other risks. To keep inactive, waste, surplus, scrap and obsolete items at the minimum level.

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Limitations of Inventory Control: (i) Efficient inventory control methods can reduce but cannot eliminate business risk. Inventory control is concerned with various items stocked at predetermined level or within some safe limits. A inventory is an essential part of any organization, it consists of many items running into thousands. 2.