What are the objectives of inventory system?
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i) Efficient inventory control methods can reduce but cannot eliminate business risk. (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.
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Objectives:
(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.;
(vi) To maintain necessary records for protecting against thefts, wastes leakages of inventories and to decide timely replenishment of stocks.
hope,it helps you.
(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.;
(vi) To maintain necessary records for protecting against thefts, wastes leakages of inventories and to decide timely replenishment of stocks.
hope,it helps you.
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