What are the objectives of inventory control?
Answer:
Inventory control is the management of the flow of goods to ensure that an organization has the right amount of inventory at the right time to meet customer demand. The main objectives of inventory control are:
To ensure that the right products are available when they are needed: Inventory control helps organizations ensure that they have the right products in stock to meet customer demand, without overstocking or understocking.
To minimize inventory holding costs: Inventory control helps organizations minimize the cost of holding inventory, such as storage costs, handling costs, and obsolescence costs.
To optimize inventory turnover: Inventory control helps organizations optimize their inventory turnover, which is the number of times inventory is sold and replaced over a given period.
To reduce stock shortages and stock-outs: Inventory control helps organizations reduce the likelihood of stock shortages and stock-outs, which can lead to lost sales and reduced customer satisfaction.
To improve decision-making: Inventory control provides organizations with the information they need to make informed decisions about their inventory levels, such as when to reorder, how much to reorder, and what to reorder.
To minimize waste and spoilage: Inventory control helps organizations minimize waste and spoilage by ensuring that perishable goods are sold before they reach their expiration date, and that damaged goods are identified and disposed of before they become a problem.
Overall, the objectives of inventory control are to ensure that an organization has the right products in stock to meet customer demand, while minimizing the costs associated with holding inventory and improving the efficiency and effectiveness of the supply chain.