Inventory Management System is a technique of maintaining and monitoring the size of the inventory. It is in appropriate level. So that the production and distributions take place effectively. A component of supply chain management. Supervises the flow of goods from manufacturers to warehouses. Also, from these facilities to point of sale. The main objective of inventory control is to achieve maximum efficiency. In production and sales with the minimum investment in inventory.
Inventory Control is achieved by: Purchasing items at proper time and price and in the right quantity. Provision of suitable storage locations with sufficient space. Maintaining the proper level of stocks. Firstly, the Adequate inventory identification system. Up-to-date and accurate record keeping. Appropriate requisition procedures.
Inventory control is not all about managing stocks and ordering goods. But inventory control combined with efficient analysis tools can be truly effective. Eventually, it can help us identify the trends in the demand for various products. It can be done by carrying out various types of analysis. However, carrying out such an analysis at regular intervals. Also, can help the shop manager to decide upon the future reordering strategies. Taking some major decisions regarding the purchase of goods.
A very useful technique for managing stocks and sales records. Super-market stores and sells various products. Which include packed foodstuffs many other products of day to day use. It also stores some costly items like wristwatches, small electronic goods, artificial jewelry, etc. Also, some household goods like washing powders, gaskets, etc. Managing all these products, sufficient stocks and reordering from time to time is a difficult job. To do it more effectively and correctly a better