Presentation

on
Inventory Management System

MOHAMMED RAFAY QUADRI

Jibran Quadri Institute Of

Management
Science & Research
 What is Inventory ?

Jibran Quadri Institute Of Management Science &

Research
 TYPES OF INVENTORIES

Jibran Quadri Institute Of Management Science &

Research
 TYPES OF INVENTORIES

Raw material and production inventories

In process inventories

Finished goods inventories

Jibran Quadri Institute Of Management Science &

Research
Movement or Transit inventories

Let size inventories

Jibran Quadri Institute Of Management Science &

Research
 Need of inventories

Jibran Quadri Institute Of Management Science &

Research
 Need of inventories
To economize production level

To maintain adequate inventory so as avoid stoppages

To avoid blocking of the capital amount
To earn favorable return of investment

To take advantages of lower bulk transportation

To stabilize direct labour requirement to improve labour relation

Jibran Quadri Institute Of Management Science &
Research
 Various method of
Inventory classification

Jibran Quadri Institute Of Management Science &

Research
Various method of Inventory classification

A B C analysis

Jibran Quadri Institute Of Management Science &

Research
H-M-L classification (high, medium, low )

Unit >10000 = H
Unit <10000 ,but unit >1000 = Medium
Unit <1000 = Low

V-E-D classification (vital, essential, desirable )

Spare parts

Jibran Quadri Institute Of Management Science &

Research
S-D-E classification (scarce, difficult, easy)
Not easy to available

G-O-L-F classification (government, ordinary, local, foreign )

From others sources

Jibran Quadri Institute Of Management Science &

Research
 WHAT
IS
Essential for good inventory control system

Jibran Quadri Institute Of Management Science &

Research
Essential for good inventory control system
Classification and identification of inventory
Standard and simplification of inventories
Setting marketing and minimum limits
Economic order quantity

Adequate storage facilities

Co-ordination
Budgeting
Internal checks
Adequate record and report
Intelligent and experienced personal

Jibran Quadri Institute Of Management Science &

Research