| Inventory management refers to the process of | | | | materials, semi-finished products or any other thing |
| managing the stocks of finished products, | | | | from a supplier. If you are a retailer, then this |
| semi-finished products and raw materials by a firm. | | | | process begins as soon you have placed your first |
| Inventory management, if done properly, can bring | | | | order with the wholesaler. |
| down costs and increase the revenue of a firm. | | | | Once orders have been placed, there is generally a |
| How much one should invest in inventory | | | | short period of time available to a firm to put an |
| management? The answer to this question depends | | | | inventory management plan in place before the |
| on the volume and value of inventory as a | | | | supplies are delivered. Inventory management helps a |
| percentage of the total assets of a firm. The | | | | firm to decide in advance where these supplies |
| importance of inventory management varies | | | | should be stored. If a firm is getting supplies of |
| according to industries. For example, an automobile | | | | small-sized goods, it may not be much of a problem |
| dealer has very high inventories, sometimes as high | | | | to store them, but in the case of large goods, one |
| as 50 per cent of the total assets, whereas in the | | | | has to be careful so that the warehousing space is |
| hotel industry it may be as low as 2 to 5 per cent. | | | | optimally utilized. |
| The process of inventory management is a | | | | From invoices to purchase orders, there is lot of |
| continuous one and there are various kinds of | | | | paperwork and documentation involved in inventory |
| solutions available. It is advisable to employ specialized | | | | management. Several software programs are |
| staff for inventory management. | | | | available in market, which help in inventory |
| The inventory management process begins as soon | | | | management. |
| as one has started production and ordered raw | | | | |