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Nagerkoil.com
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Inventory
Effective inventory management is all about knowing what is on hand, where it is
in use, and how much finished product results. Inventory management is the
process of efficiently overseeing the constant flow of units into and out of an
existing inventory.
This process usually involves controlling the transfer in of units in order to
prevent the inventory from becoming too high, or dwindling to levels that could
put the operation of the company into jeopardy. Competent inventory management
also seeks to control the costs associated with the inventory, both from the
perspective of the total value of the goods included and the tax burden
generated by the cumulative value of the inventory. Inventory management is not
limited to documenting the delivery of raw materials and the movement of those
materials into operational process.
The movement of those materials as they go through the various stages of the
operation is also important. Inventory management is not limited to documenting
the delivery of raw materials and the movement of those materials into
operational process. Typically known as a goods or work in progress inventory,
tracking materials as they are used to create finished goods also helps to
identify the need to adjust ordering amounts before the raw materials inventory
gets dangerously low or is inflated to an unfavorable level.