Inventory control

Inventory is a physical stock of items that a business or production enterprise keeps in hand for smooth functioning. Inventory control is a concept in which material with apposite quantity and quality is made available whenever required with due regard to economy in storage and ordering costs and working capital. Inventory control helps to ensure goods requirement in reserve format at the lowest possible ultimate cost. Improper inventory control leads to heavy loss. The most important functions of inventory control are to run the stores effectively, to ensure timely availability of material and avoid build-up of stock levels, technical responsibility for the state of material, stock control system, maintenance of materials, supply etc. and avoiding improper handling. The tools to control inventory are maximum stores, minimum stores, standard order, re-ordering point and procurement time. A good inventory control allows an organization to make purchases in economic lots, maintain continuity of operations, avoid small time consuming orders and assured prompt delivery of finished goods.