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Free Download Inventory Management PPT with PDF: Inventory management is obliged for the goods in inventory, also to their inward flow and outward flow. It looks after the units in a firm and makes sure that they are in a moderate amount which does not affect the performance of a company. If it comes to a company or its origin then the department of management is a genuine soul of a firm’s growth and success.

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Inventory Management PPT with PDF

So, because of it, a separate management department has to be established and this also enhances the efficiency of a company. Like other branches of management, inventory management is also a vital branch of management that aids in the good results of a company.

Functions of Inventory Management:

The functions of inventory management are as below:

  • An inventory manager should manage the time well and should know about each unit like the time taken by a unit for processing and reaching inventory because there should not be any scarcity in inventory.
  • Inventory management is also supplied with the value of raw materials and their cost in making finished products.
  • It also keeps a check-in not increasing the price of a product after adding all taxes. It has to be careful to complete prices right from production cost to packaging cost so that the value per product does not get enhanced.
  • Inventory management also notices the presence of raw items that are availed in finishing orders. It is the duty of managers to do the above task to finish in time.
  • Inventory management also has the responsibility of keeping the account of raw materials and also makes orders of it at a required time by not disturbing the processing operations.
  • Inventory management also keeps a document of finished goods and their shipping. People under this department should be very smart in making calculations as they manage the complete work of products and raw materials.

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The below figure explains about core inventory management process and functions:

Fig1: Core Inventory Management Process and Functions

The relationship between a function of inventory management team and inventory management systems:

The below diagram explains about the functional access of relationship between the function of inventory management and the function of inventory management systems:

fig2: a functional access relationship between function of inventory management and function of inventory management systems

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fig2: a functional access relationship between function of inventory management and function of inventory management systems

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Purpose of Inventory:

All the organizations have a supply of inventory because of below reasons:

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  • To maintain independence of operations
  • To meet variation in product demand
  • To allow flexibility in product scheduling
  • To furnish a safeguard for variation in raw material delivery To take benefit of economic purchase order size
  • Many other domain-specific reasons

Inventory costs:

In making the decisions which affect the size of inventory, the below costs have to be considered and they are:

  • Holding costs or carrying costs
  • Setup cost or manufacturing cost
  • Cost of ordering
  • Shortage costs

Inventory systems:

The below are the inventory systems:

  • A single period inventory model
  • Multiperiod inventory systems

The single period inventory models are used in following services:

  • Overbooking of airline flights
  • Ordering of fashion items
  • Any type of one-time order

There are two types of multiperiod inventory systems and they are:

  • Fixed order quantity model
  • Fixed-time period models

Inventory control:

It is a vital parameter for managers to identify the running of products by availing the logic of inventory control. The relation between prices of a sold product, the value of average inventory, and inventory turn.

  • Average inventory value * inventory turn = cost of goods sold

Content of the PPT and PDF for Inventory Management

  • Introduction
  • Forms of Demand
  • Forms of Inventories
  • Classification of Inventories Cost
  • Inventory Control
  • Objectives of Inventory Control
  • References

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