Inventory and Risk Management
In the due course of the project, inventory management plays a major role in controlling theproject cost. In order to carry forward the project as scheduled and keep it within the scheduledbudget, risk management takes full charge in minimizing the damage that might cause in theproject life cycle.The purpose of inventory management is to ensure availability of materials in sufficient quantityas and when required and also to minimise investment in inventories.Inventory management is necessary for every management to give proper attention to inventorymanagement. A proper planning of purchasing, handling, storing and accounting should form apart of inventory management. An efficient system of inventory management will determine
What to Purchase.2. How Much To Purchase.3. From Where To Purchase.
Where To Store Etc.The purpose of inventory management is to keep the stocks in such a way that neither there isover-stocking nor under-stocking. The investments in inventory should be kept in reasonablelimits.In the initial stage of the construction project, the organization has to plan, schedule andimplement for materials, machinery and resources required. When it comes to the materials for a scheduled project, planning engineer and the project manager must derive the materialsrequired using the relevant techniques available. Let’s say, the (EOQ) economic order quantityfor a particular activity can be calculated and meet the requirements.This paper gives you a case study on the inventory and risk management in the project’s lifecycle. By the ABC analysis, vendor rating, selection criteria, financial comparisons throughprocurement and other techniques used in controlling the project cost and its timely completion.
To study how inventory management practices plays an important role in supportingother activities of an organization
To judge the success of the management in balancing the production with the demand.
To find out the difference between the theoretical and practical aspect of inventorymanagement.4. To find out the techniques to select the vendor for particular works.
Comparison of the financial statement when inventory is over –stock and under stocklevel6. Classify the inventories and applying the tools and techniques.