List of Group Members

1:Arooj Akram
2:Ambreen Iqbal
3:Rehman Shoukat
4:Anum Tariq
5:Sehrish Khalid
6:Faisal Ishtiaq
Chapter#12

Inventory
Management
 Contents:
1:Inventory Management Definition
2:Types of Inventories
3:Use of Inventories in Organizations
4:Functions of Inventory Management
5:Objectives of Inventory Management
6:Relevant Inventory Costs
7:ABC Analysis
8:Q system & p System
Inventory Management

“The planning and controlling of

inventories in order to meet the
competitive priorities of the
organizations.’’
 Types of inventories
 Raw material
 Components
 Work in process
 finished goods
 Distribution inventory
 Use of inventory in organizations
 Anticipation Inventory
 Fluctuation Inventory
 Lot-size Inventory
 Transportation Inventory
 Speculative/Hedge Inventory
 Maintenance, Repair, & Operating
Inventory (MRO)
 Functions of inventory

 To meet Anticipated Demand

 To Regulate Production Requirement
 To Protect against Stock-out
 To help Hedge against Price Increases
 To permit Operation
 To take advantage of Quantity Discounts