In any business or association, all capacities are interlinked and associated with each other and are frequently covering. Some key perspectives like production network management, coordinations and inventory frame the foundation of the business conveyance work. In this manner these capacities are critical to advertising supervisors and in addition fund controllers. Inventory management is a vital capacity that decides the strength of the store network and also the effects the budgetary well-being of the accounting report. Each association continually endeavors to keep up ideal inventory to have the capacity to meet its prerequisites and stay away from over or under inventory that can affect the money related figures.
Inventory is constantly powerful. Inventory management requires steady and watchful assessment of outside and inward components and control through arranging and audit. The vast majority of the associations have a different office or employment work called inventory organizers who persistently screen, control and audit inventory and interface with creation, acquirement and fund divisions.
Characterizing Inventory Inventory is a sit without moving supply of physical products that contain monetary esteem, and are held in different structures by an association in its authority anticipating pressing, preparing, change, utilize or deal in a future purpose of time. Any association which is into generation, exchanging, deal and administration of an item will essentially hold load of different physical assets to help in future utilization and deal. While inventory is an important wickedness of any such business, it might be noticed that the associations hold inventories for different reasons, which incorporate theoretical purposes, practical purposes, physical necessities and so forth.
From the above definition the accompanying focuses emerge with reference to inventory: All associations occupied with creation or offer of items hold inventory in one shape or other. Inventory can be in entire state or deficient state. Inventory is held to encourage future utilization, deal or further preparing expansion. All stocked assets have monetary esteem and can be considered as resources of the association. Diverse Types of InventoryInventory of materials happens at different stages and branches of an association. An assembling association holds inventory of crude materials and consumables required for creation. It additionally holds inventory of semi-completed products at different stages in the plant with different divisions. Completed merchandise inventory is held at plant, FG Stores, circulation focuses and so forth. Encourage both crude materials and completed merchandise those that are in travel at different areas additionally shape a piece of inventory contingent on who claims the inventory at the specific crossroads. Completed merchandise inventory is held by the association at different stocking focuses or with merchants and stockiest until it achieves the market and end clients. Other than Raw materials and completed merchandise, associations likewise hold inventories of extra parts to benefit the items. Deficient items, faulty parts and scrap likewise frames a piece of inventory the length of these things are stocked in the books of the organization and have financial esteem. Sorts of Inventory by Function | INPUT | PROCESS | OUTPUT |
| Raw Materials | Work In Process | Finished Goods |
| Consumables required for processing. Eg : Fuel, Stationary, Bolts & Nuts etc. required in manufacturing | Semi Finished Production in various stages, lying with various departments like Production, WIP Stores, QC, Final Assembly, Paint Shop, Packing, Outbound Store etc. | Finished Goods at Distribution Centers throughout Supply Chain |
| Maintenance Items/Consumables | Production Waste and Scrap | Finished Goods in transit |
| Packing Materials | Rejections and Defectives | Finished Goods with Stockiest and Dealers |
| Local purchased Items required for production | | Spare Parts Stocks & Bought Out items |
| | | Defectives, Rejects and Sales Returns |
| | | Repaired Stock and Parts |
| | | Sales Promotion & Sample Stocks |
(Source: Management Study Guide) 
