Inventory Management

Maintaining the right amount of inventory to meet customer demand while minimizing inventory costs.

What is the definition of inventory control?

"Inventory control or stock control can be broadly defined as 'the activity of checking a shop's stock'."

What is the purpose of inventory control?

"It is the process of ensuring that the right amount of supply is available within a business."

What is the goal of inventory control in relation to profitability?

"[...] maximising the amount of profit from the least amount of inventory investment without affecting customer satisfaction."

What other aspects are involved in inventory control?

"Other facets of inventory control include forecasting future demand, supply chain management, production control, financial flexibility, purchasing data, loss prevention and turnover, and customer satisfaction."

What is an inventory control system?

"An extension of inventory control is the inventory control system."

How does an inventory control system assist in managing inventory?

"[...] a technological system and its programmed software used for managing various aspects of inventory problems."

What does an inventory control system allow companies to assess?

"The inventory control system allows for companies to assess their current state concerning assets, account balances, and financial reports."

Besides stock checking, what are some key practices in inventory control?

"The more science-based, methodical practice of not only verifying a business's inventory but also maximizing the amount of profit from the least amount of inventory investment without affecting customer satisfaction."

What is the significance of forecasting future demand in inventory control?

"Forecasting future demand" is one of the facets of inventory control.

What is the importance of supply chain management in relation to inventory control?

"Supply chain management" is one of the facets of inventory control.

How does production control relate to inventory control?

"Production control" is one of the facets of inventory control.

How does inventory control contribute to financial flexibility?

"Financial flexibility" is one of the facets of inventory control.

What role does purchasing data play in inventory control?

"Purchasing data" is one of the facets of inventory control.

How does inventory control address loss prevention?

"[...] a methodology (which may include the use of technological barriers) for handling loss prevention in a business."

What is the relationship between inventory turnover and inventory control?

"Loss prevention and turnover" are facets of inventory control.

How does customer satisfaction tie into inventory control?

"Customer satisfaction" is one of the facets of inventory control.

How does inventory control impact a company's assets?

"The inventory control system allows for companies to assess their current state concerning assets."

How does an inventory control system assist in financial reporting?

"The inventory control system allows for companies to assess their current state concerning [... financial] reports."

What does inventory investment refer to?

"Maximizing the amount of profit from the least amount of inventory investment without affecting customer satisfaction."

How does an inventory control system aid in managing account balances?

"The inventory control system allows for companies to assess their current state concerning [...] account balances."