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    This document discusses inventory management and was presented by Siddhesh Pratap Singh, Sandeep K C, and Sunita Kharayat. It defines inventory as items used to support production and customer service. Inventory management involves ordering, pricing, space management, receiving, and controlling products. The document outlines components of inventory, motives and risks of holding inventory, benefits of optimum inventory levels, inventory valuation methods, costs of inventory management, and tools for inventory control. It concludes with a case study and video on inventory management techniques.

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    Cap. Budgeting

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    This document discusses inventory management and was presented by Siddhesh Pratap Singh, Sandeep K C, and Sunita Kharayat. It defines inventory as items used to support production and customer service. Inventory management involves ordering, pricing, space management, receiving, and controlling products. The document outlines components of inventory, motives and risks of holding inventory, benefits of optimum inventory levels, inventory valuation methods, costs of inventory management, and tools for inventory control. It concludes with a case study and video on inventory management techniques.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    14 views13 pages

    Inventory Management: Presented by

    Uploaded by

    Siddhesh Pratap
    This document discusses inventory management and was presented by Siddhesh Pratap Singh, Sandeep K C, and Sunita Kharayat. It defines inventory as items used to support production and customer service. Inventory management involves ordering, pricing, space management, receiving, and controlling products. The document outlines components of inventory, motives and risks of holding inventory, benefits of optimum inventory levels, inventory valuation methods, costs of inventory management, and tools for inventory control. It concludes with a case study and video on inventory management techniques.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 13

    INVENTORY

    MANAGEMENT

    PRESENTED BY
    SIDDHESH PRATAP SINGH
    SANDEEP K C
    SUNITA KHARAYAT

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 1


    WHAT IS
    INVENTORY ?

     Those items used to support


    PRODUCTION… supporting activity
    and CUSTOMER service.

     It is the stock of any ITEM or


    RESOURCE used in an
    Organization.

     It is an IDLE material resource of


    an enterprise awaiting future sales,
    use, or transformation.

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 2


    INVENTORY
    MANAGEMENT
    Inventory management is a system
    of overseeing the flow of inventory
    through a business and is an
    integral part of any company.

    It involves ordering, price


    comparison, space management,
    shipping, receiving, and controlling
    the products to make sure the
    inventory gets neither too high nor
    too low.
     

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 3


    COMPONENTS OF INVENTORY

    RAW MATERIAL

    WORK-IN-PROGRESS

    FINISHED PRODUCTS

    STORES AND SPARES

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 4


    MOTIVES FOR HOLDING
    INVENTORY

    TRANSACTION MOTIVE

    PRECAUTIONARY MOTIVE

    SPECULATIVE MOTIVE

    CONTRACTUAL MOTIVE

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 5


    RISKS IN HOLDING INVENTORY

    PRICE DECLINE

    PRODUCT DETERIORATION

    PRODUCT OBSOLESCENCE

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 6


    BENEFITS OF HOLDING
    OPTIMUM INVENTORY
     Adequate supply of materials

     Keeps down investment in


    inventories

     Eliminates duplication in ordering


    stocks

     Better utilization of available stock

     It prevents pilferage

     It helps in preparing sound


    financial statement

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 7


    METHODS OF INVENTORY
    VALUATION

     Historical Cost Method


     Specific Identification
     First in first out
     Last in first out
     Average Cost Method
     Highest in first out
     Base Stock Method

     Lower of Cost or Market Method

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 8


    COSTS INVOLVED IN
    INVENTORY MANAGEMENT

    ORDERING COSTS

    INVENTORY CARRYING
    COSTS

    SHORTAGE COSTS

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 9


    TOOLS OF INVENTORY
    CONTROL
     ABC Analysis
     Economic Order Quantity
     Two-Bin Technique
     VED Classification
     HML Classification
     SDE Classification
     FSN Classification
     Order Cycling System
     Just in Time

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 10


    CASE STUDY

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 11


    VIDEO

    Kanban and JIT 2 Bin system.flv

    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 12


    12/07/2021 GROUP-3 (INVENTORY MANAGEMENT) 13

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