INVENTORY MANAGEMENT

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LIMITATION OF INVENTORY MANAGEMENT

CREATED BY SANJAY NAYAL
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INTRODUCTION OF INVENTORY MANAGEMENT
Inventory management may be defined as inventory
management is made up two words as inventory and
management. Inventory mean the dictionary meaning
of inventory is stock of good. The word
inventory is understood different by various
authours.in accounting language it may mean stock
of finished goods only. in manufacturing concern,
it may include raw material, work in progress and
stores,etc. In simpled other author
words. According to THE AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNT(AICPA)define inventory
is a tangible goods ,which are physical
component,which are held for sale,in process of
production and available for ready
consumption. Management
means management is the process of planing of
inventort to proper attention to management is
called management.
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MEANING OF INVENTORY MANAGEMENT

• the invesment in inventory is very high in most
  of the undertaking engaged manufacturing,whole
  sale and retail trade.the amount of investment is
  sometimes more in inventory than in other
  assets.about 90 part of working capital invested
  in inventories.
• INVENTORY MANAGEMENY ARE
  THOSE EVERY MANAGEMENT TO GIVE PROPER ATTENTION
  TO INVENTORY MANAGEMENT.A PROPER PLANNING OF
  PURCHASING,HANDLING,STORING AND ACCOUNTING SHOULD
  FROM A PART OF INVRNTORY MANAGEMENT.

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Limitation of inventory mangement

• 1-it doesnt stop staff stealng stock.
• 2-it can waste a lot of effort if not implemented
  and maintained correctly.
• 3-it does not replace incompetent management.
• 4-it can be very expensive and the return on
  invesment can take a long time.
• 5- it require a lot of staff training and you may
  loose some staff on the way.

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THANK YOU
CREATED BY SANJAY NAYAL


MBA 2ND SEM
(2014-16)


HIERANK BUSINESS SCHOOL