BHAGYASHREE NARAYAN

SAWARKAR
G.H.RAISONI SCHOOL OF BUSINESS
MANAGEMENT, NAGPUR
MBA II SEM
 MEANING
 held for SALE
 Consumed in the PRODUCTION of
goods/services
 Forms of Inventory for Manufacturing Comp.
Raw materials, Work in process,
Finished goods and stores &
spares
• ABC Analysis
• FSN Analysis
• HML Analysis
• VED Analysis
• Golf Analysis
• SDE Analysis
• SOS Analysis
• XYZ Analysis
• A firm’s annual inventory is 1,600 units.
The cost of placing an order is Rs 50,
purchase price of raw material/unit is
Rs.10 and the carrying costs is expected to
be 10% per unit p.a. Calculate EOQ?

U=1600, P= Rs. 50, S= .10 x Rs.10=Rs.1

EOQ = 2 x 1600 x 50
1

= 400 units
 It means always Better Control
 Under this the inventory classified into 3
categories viz A B and C. These categories
based upon the inventory value and cost of
significance.
 Items of High value and small in no are
termed in A.
 Items of Moderate value and small in no are
termed B
 Items of small value and in small in no are
termed C.
 Inventory is classified based on the
MOVEMENT OF INVENTORIES from stores
 Inventory technique used to AVOID
OBSOLESCENCE
 F- Fast moving
 S- Slow moving
 N- Non moving
 Material analysis on the basis of UNIT VALUE

 H- HIGH VALUE
 M- MEDIUM VALUE
 L – LOW VALUE
 Specifically used for analysis of SPARE
PARTS

 V- part is VITAL( high stock level)

 E-part is ESSENTIAL (moderate stock

level )

 D-part is DESIRABLE (minimum stock

level )
GOLF is the criterion used for this analysis of
items. Which stands for

 (G) Government
 (O) Ordinary
 ( L) Local
 (F) Foreign
 SDE analysis categories stock items in
accordance with their procurement.

 (S)- Scare

 (D) – Difficult

 (E) - Easy
 SOSstands for Seasonal and OFF Seasonal
Items

1) Seasonal and limited period availability

2) Seasonal but regular

3) Off seasonal goods.

 XYZ analysis relies on closing value of

inventory consisting of different items. Items

with high inventory value are classified as X

whereas as low value items are classified as

Z. Remaining items are categorized under Y

class.
THANK YOU