CHAPTER 29

Inventory Management

LEARNING OBJECTIVES

  • Highlight the need for and nature of inventory.
  • Explain the techniques of inventory management.
  • Focus on the need for analyzing inventory problem as an investment decision.
  • Discuss the process for managing inventory.
INTRODUCTION

Inventories constitute the most significant part of current assets for a large majority of companies in India. On an average, inventories are approximately 60% of current assets in manufacturing companies in India. Because of the large size of inventories maintained by firms, a considerable amount of funds is required to be committed to them. It is, therefore, absolutely imperative to manage inventories efficiently and effectively, in order to avoid unnecessary ...

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