Definition And Purpose of Inventory Management
Inventory management is a material or goods stored to be used to fulfill a specific purpose, such as for use in the production process or assembly, for resale, or for parts of an equipment or machinery. Inventories can be raw materials, auxiliary materials, goods in process, finished goods, or parts. You could say there are no companies that operate without supplies, even though inventory is simply a source of funds idle, because before the inventory used to mean funds that are bound therein can not be used for other purposes. Once the importance of this inventory so that the accountants put it on the balance sheet as a current asset heading. As one of the important assets of the company, because it usually has a value large enough and have an influence on the size of the operating costs-planning and inventory control is an important activity that received special attention from the management company. Each section in the company can view the inventory of a variety of differ...