As we already discussed, today, inventory control is a lot more than simply counting stock. 1. Two bin method. To avoid inventory shortage, the items are stored in two bins. When the first bin becomes empty, stock from the second bin starts getting used and at the same time, replenishment is done in the second bin. 2. Defective inventory may lead to the production of substandard finished goods and higher sales return volumes. Working capital losses due to excess idle inventory may also be included in this category. Thus, one of the main objectives of inventory management is to minimize costs. To minimize inventory wastage and losses. Objectives of Inventory Management The primary objectives of inventory management are: (i) To minimize the possibility of disruption in the production schedule of a firm for want of raw material, stock and spares. (ii)To keep down capital investment in inventories. So it is essential to have necessary inventories. Excessive An inventory management system helps you to track and control the company's supply so that you can optimize your inventory and manage them without spending extra time and money. The most integral part of the inventory management system is to evaluate your business on a regular basis to ensure your path towards success track. Effective inventory management allows a distributor to meet or exceed customers' expectations of product availability with the amount of each item that will maximize their company's net profit or minimize its total inventory investment. Effective inventory management is the result of outstanding inventory control and inventory management. The objectives of inventory management are raised in the following points: (i) Adequate investment in inventories is desirable for smooth production and sales. (ii) Maintaining the optimal supply of inventory can serve as protection during shortages of raw materials. (iii) Adequate stock of inventory of finished goods is helpful for smooth sales. Inventory control is an activity of checking a shop's stock and to maintain the inventory at desired levels, keeping in view the best economic interest of an organization. In simple words, inventory control is a process of ensuring that a business maintains the adequate quantity of stock to meet the forecasted demand with minimum holding cost. Definitions. Inventory control is a system of ordering based on the maintenance of the stock in a store using a re-order rule based on the stock level. Inventory control is concerned with various items stocked at predetermined level or within some safe limits. Inventory control may be defined as planning, ordering and scheduling of materials 1. Ensure Optimal inventory levels. The primary objective of Inventory Management is to ensure that you have enough stock or inventory of raw materials, components, parts and finished products to meet customer demand. Of course, how much stock is "enough" will vary from business to business and often from season to season. The specific objectives of inventory management are as follow: a) Utilizing of scare resources (capital) and investment judiciously. b) Keeping the production on as on-going basis. c) Preventing idleness of men, machine Inventory Control 2013 41 . ABC Classification System Classifying inventory according to annual value of consumption of Objective Of Inventory Management PDF Book Details . Product details Publisher : Productivity Pr