CHAPTER 10.INVENTORY CONTROL
The inventory management function determines the health of the supply chain and impacts the financial health of the balance sheet. Every organization strives to maintain optimum inventory levels to be able to ship customer orders on time and to avoid over or under levels that impact financial results.
Inventory is dynamic and requires constant control and careful evaluation of external and internal factors throughout the planning and review process.
Most organizations have an “inventory analyst” or “inventory planner” position with the responsibility to continuously monitor, control, and review inventory and interface with the production, procurement, and finance departments. In this chapter, we’ll explore several best practices to consider in the inventory control process.
Outstanding inventory management is critical to establishing and maintaining a high-performance working capital management program. Slow-moving inventory is not only a big management headache, it can significantly reduce a company’s financial performance and result in increased carrying costs, damage, theft, and obsolescence. Chapter 10 includes the following items:
| Chapter 10. Inventory Control |
| Types of Inventory |
| Inventory Management |
| Two Types of Demand |
| Balancing Inventory Levels |
| Inventory Costing Methods |
| Inventory Costing Methods for Small Businesses |
| Outsourced Inventory Management |
| Inventory Control Standards |
| Inventory Verification |
| Inventory Valuation |
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