“Assignment ”

Name: Inventory Management Technology.

Submitted By,

Tanvir Mahmud
Student’s ID: 203-47-404
Semester:3rd
Department of Civil Engineering,
Daffodil International University.

Submitted To,

Mr Repon Miah
Senior Lecturer in Accounting
Department of Business Administration
Daffodil International University.
Abstract
Inventory management is the controlling of non-capitalized
possessions (inventory) and stock substances in businesses. It
supervises the stream of goods from manufacturers to
storeroom sand from these amenities to the point of the
auction. A crucial role of inventory management is keeping a
complete record of each new or reimbursed product as it
arrives or leaves aware house or fact of sale. Managing client
and vendor affairs is a critical facet of managing supply chains.
In many gears, the concerted relationship perception is
painstaking the crux of managing the supply chain. However, a
handier examination of supply chain relations, particularly
those concerning product flows, discloses that the sentiment of
these relationships is portfolio movement and storing. Much of
progress intricate in handling relations grounded on acquisition,
transmission, or inventory management. As per that, catalogue
theatres a critical part in chains (supply) since it is a noticeable
emphasis of supply manacles .

Introduction
Problematic of inventory control is among the most
important in administrative management. As a
regulation, there is no typical solution, and the
circumstances at each business or firm are exclusive and
comprise many diverse features and limits. A happening
task of the mathematical replicas development and
defining the optimum inventory control policy tends
connected with this problem. Sorts of inventory
management facsimiles are that the resultant optimal
resolutions can be applied in a fast-changing condition
where, for instance, the circumstances are altered daily.
There is a necessity for new and actual methods for
modelling systems associated with inventory
management, in the expression of indecision.
Uncertainty exists concerning the control entity, as the
process of gaining the necessary info about the existence
is not always conceivable (Dekker et al. 2013). The
elucidation of such multifaceted tasks needs the use of
schemes analysis, development of an orderly approach
to the delinquent of management in general. Inventory
facsimiles are renowned by the norms made about the
crucial variables: request, the cost edifice, physical
physiognomies of the system. These conventions may
not outfit to the real situation where there is an excellent
pact of uncertainty and erraticism.
Aims and purpose of the study

The research study entails two critical objectives, which

are financial and operational. The operational ideas
explicate that passable sum of stock of materials, as well
as releases, should preserve to have production
endlessly. The economic purposes of inventory elucidate
that amount capitalized in the catalog should not endure
idle, and it should have a working investment. According
to Michalski (2013) inventory management safeguards
that finished goods, spares, and raw resources supplied
to the right individual at the right place to have
continuous sale sand production. Inventory management
is to uphold inventory at the suitable level to avoid
extreme or shortage of stock because both the gears are
undesirable for occupational. Thus, the administration is
faced with the following conflicting objectives: In
addition, the study will purpose in explaining the goals of
inventory management in supply chain management. It is
a vital aspect that each firm should employ in its
operation as it enhances efficient chain of activities.
Literature Review

In any company in operation, stocks (reserves) tends

creation to transmit out the regular events of the
company. Proper and appropriate determination of the
inventory control(optimum) policy allows freeing a
significant amount of possessions, frozen in the method
of stocks, which eventually upsurges the efficiency of
resource use. Never the less, there are accurately
millions of different types of yields factory-made in the
society; there are only two critical decisions that the
company needs to enhance in controlling inventory:
•How large might a portfolio replacement order be?
•When will an inventory replacement demand be
positioned?

Importance of Inventory Management

management system can also help you prevent a number of
other mistakes:

Inventory management is important from the viewpoint that it

enables to address two important issues:
The firm has to maintain adequate inventory for smooth
production and selling activities.
It has to minimize the investment in inventory to enhance a
firm’s profitability.
Investment in inventory should neither be excessive nor
inadequate. It should just be optimum. Maintaining optimum
level of inventory is the main aim of inventory management.
Excessive investment in inventory results into more cost of fund
being tied up so that it reduces the profitability, inventories may
be misused, lost, damaged and hold costs in terms of large space
and others. At the same time, insufficient investment in
inventory creates stock-out problems, interruption in production
and selling operation.

Avoid spoilt or dead stock

It’s not just storage costs where a retailer is potentially losing

money from poor inventory management. Perishable items will
be entirely wasted should too much be ordered at one time or it
isn’t stored sufficiently.

Too much stock that becomes ‘dead’ due to going out of season
or style is similarly wasteful. Better managing of inventory helps
avoid wasting money on too much spoilt or dead stock.
Improve cash flow

Any inventory is likely to have been paid for upfront. But until
this stock is sold, it’s just a hole in the bank balance and a dip in
cash flow.
Therefore, the firm may loose the customers as they shift to the
competitors. Financial manager, as he involves in inventory
management, should always try to put neither excessive nor
inadequate investment in inventory. The importance or
significance of inventory management could be specified as
below:

Inventory management helps in maintaining a trade-off between

carrying costs and ordering costs which results in minimizing
the total cost of inventory.
Inventory management facilitates maintaining adequate
inventory for smooth production and sales operations.
Inventory management avoids the stock-out problem that a firm
otherwise would face in the lack of proper inventory
management.
Inventory management suggests the proper inventory control
system to be applied by a firm to avoid losses, damages, and
misuses.
CONCLUSION

Inventory management has to do with keeping accurate records

of goods that are ready for shipment. This often means having
enough stock of goods to the inventory totals as well as
subtracting the most recent shipments of finished goods to
buyers. When the company has a return policy in place, there is
usually a sub-category contained in the finished goods inventory
to account for any returned goods that are reclassified or second
grade quality.
Accurately maintaining figures on the finished goods inventory
makes it possible to quickly convey information to sales
personnel as to what is available and ready for shipment at any
given time by buyer.
Inventory management is important for keeping costs down,
while meeting regulation. Supply and demand is a delicate
balance, and inventory management hopes to ensure that the
balance is undisturbed. Highly trained Inventory management
and high-quality software will help make Inventory management
a success. The ROl of Inventory management will be seen in the
forms of increased revenue and profits, positive employee
atmosphere, and on overall increase of customer satisfaction.
Thank you