A “Business activity directed to securing the materials, supplies, and equipment required in the operation of an organization” is how purchasing is defined. Lewis defines purchasing as any primary materials, supplies, equipment, and so on that the maker obtains through any method. This procurement includes extraction from owned mines or forests, cultivation of owned agricultural … Read more
Selective Control of Inventory: Selective control refers to the variation in the method of control from item to item on some selective basis. For this, a variety of criteria are applied. They are: Selective control is more effective and is directed to more significant groups of items. In this system, the items are categorized into … Read more
Reasons for Keeping Inventories:
Types of Inventories: In general, a manufacturing company has the following sorts of stocks on hand: Additionally, there are four other categories into which inventories can be divided: (i) fluctuation inventories, (ii) anticipation inventories, (iii) lot size inventories, and (iv) transportation inventories.