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.
Meaning of Inventory: The term “inventory” often refers to the supplies on hand. Another name for it is an enterprise’s idle resource. Items retained in inventory are either those that are available for purchase, are being produced, or are raw resources that have not yet been put to use.
