Page 128 - DMGT525_MATERIALS_MANAGEMENT

Neha Tikoo, Lovely Professional University
Unit 9: Inventory Control

Unit 9: Inventory Control Notes

CONTENTS
Objectives
Introduction

9.1 Elements of Effective Inventory Control
9.2 Advantages of Inventory Control
9.3 Procedure for Setting up an Effective Inventory Control

9.4 Inventory Classification Techniques
9.4.1 V.E.D. Analysis
9.4.2 S.D.E. Classification
9.4.3 F.S.N. Analysis
9.4.4 X.Y.Z. Analysis

9.5 Logistics Management & Its Link with Inventory Control
9.6 Summary
9.7 Keywords

9.8 Review Questions
9.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Define Inventory Control

 Discuss Its Elements
 Explain the Process for Inventory Control
 Discuss the Different Inventory Classifications

 Elaborate on Logistics Management
Introduction

Previous unit dealt with the concept of inventory management, the different costs of inventory
and economic order quantity. It also discussed the various inventory models and safety stock.
In this unit you will study about inventory control, the various elements of an effective inventory
control and its advantages. This unit will also discuss the various analysis systems and give you
an insight to the logistics management.
Inventory control is a set of policies and operating procedures that are designed to maximize a
company’s use of inventory, so that it generates the maximum profit from the least amount of
inventory investment without intruding upon customer satisfaction levels.

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