important short notes on Inventory Control
cs executive cost and management accounting mcq objectice notes
Inventory control is the systematic control and regulation of purchase, storage and usage of materials in such a way as to maintain an even flow of production and avoid excessive investment in inventories. Efficient material control reduces losses and wastages of materials.
Inventory control is the core of materials management. Inventory control is a planned method of determining when to purchase, so that purchasing and storing cost are minimum without affecting production or sales. Without proper control, inventories have a tendency to grow beyond economic limits. Lack of control over inventory also leads to excessive consumption and wastage as operatives are liable to become careless with irrational supply of materials.