Hello sir I am student of MBA Program and want to get the notes of Inventory Management subject so please provide me pdf file of notes of this subject.

Inventory management is a science primarily about specifying the shape and percentage of stocked goods.

Inventory Management

What is Inventory?
Inventory is an unused asset, which lies in stock without participating in value adding process.

Unused equipment, raw material, WIP and Finished goods, consumables, spare parts, bought out parts, tools and tackles, gauge and fixtures etc.

In India 9 to 12 months of sales quantity lies in the form of Inventory [R/M, WIP, Bought out parts and Finished goods] as against a few days in Japan and a month in the US and Europe

Huge amount of NPAs in our country, Banks, PSUs

If look around in our facilities we find stocks lying unused for years catching dust and rust in the form of plant and equipment, raw material, WIP and Finished goods.

In our country inventory is always viewed as asset [working capital], in fact, though it is called an asset, it is a big liability

Reluctance to scrap useless inventory on time is one of the reasons why we carry huge stocks

Inventory is biggest source of waste

Japanese companies focused their attention on Inventory through now well known concept of 5S.

Symptoms of Poor Inventory Management

1. An increase in the number of backorders, indicating too many stock outs

2. Rising inventory investment

3. High customer turnover

4. An increasing number of cancelled orders

5. Insufficient storage space – too much inventory on hand

6. An increase in the volume and value of obsolete products

7. Low Inventory Turn Over Ratio [about 50 is a good ratio]

8. Working capital problems

Now I am providing you pdf file of notes on Inventory Management so you can take help of it.

Notes on Inventory Management

Attached Files

Notes on Inventory Management.pdf (273.1 KB, 145 views)