Inventory Management Types & Techniques

Inventory management system is the process of efficiently overseeing the constant flow of units in and out of an existing inventory. 

It is defined as the assets that are intended for sale, are in practice of being produced for sale or to be used in producing goods.
Beginning inventory+ net purchases –cost of goods sold=ending inventory is the formula to calculate company inventory.
It is essential for your enterprise to maintain
•High quality standards
•Meet the customer satisfaction
•To Manage inventory effectively
 There are different methods such as
•Total quality management
•Six sigma

It can help you to maintain high level customer satisfaction & inventory management  can realize the potential of supply chain management.
They are the asset of the firm and require investments and hence involve the commitment of firm.

Inventory control techniques
1.Just in time technique
2.Stock Review: stock review is a regular analysis of your stock. In this to check the minimal stock. This can be checked manually or through automated software.
3.ABC analysis.

Types of inventory system:

1. Raw materials
2. Components
3. Work in progress
4. Finished goods
5. Distribution inventory
6. Maintenance, repair and operating supplies

Methods of inventory:

1. LIFO
2. FIFO
3. Average Cost 

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Inventory Management Solutions

 For more information visit Inventory Management Solutions