Concept of Inventory control

 We know that there are many types of resources organisation possess for maximum production of organisation. These resources are raw materials, coal, petroleum, minerals and so on. The process of purchasing and storing all these things by a systematic way and use it by a proper way. This process is called inventory control.

In other words we can say that inventory control is a systematic, scientific way to arrange, store, use our resources in such type of way that optimum utilisation and maximum production is possible inside organisation.

There are many other experts that have define inventory control by a number of ways. Some ways are as below:

According to Gordon Carson- Inventory control is the process where the investment in raw material and parts carried in stocks is regulated within predetermined limits set in accordance with the inventory policy established by the management.

According to business- It is a method designed by the top level of management of company. It requires a strategic decision to be taken for it's effective implementation. It's proper implementation is the responsibility of the store manager.

Nature of Inventory Control:

1. It is an internal function of organisation.

2. It belongs to production and concern activity of production.

3. It is demand oriented.

4. It is quantitative.

5. It is future oriented approach.

6. It is resource oriented approach.

7. It is flexible

8. It is broad approach.

9. It is technical approach.

10. It is goal oriented approach.

Objective of Inventory Control:

1. Regular supply of raw materials- Production in the first and main function of business. Production is demand oriented. Sometimes it becomes maximum or sometimes it becomes normal. So it is difficult to purchase,store and supply of raw materials because it is a variable approach. Inventory control ensures regular supply of raw material according to production.

2. Proper stocking- Stocking is also an important function of business. It purchase, store raw material and concern things according to need, requirement of organization. It requires huge amount of capital to store a to z things in store. Inventory control scientifically calculate the need, requirement of organisation and purchase, store all things that maintain stock level of organisation. 

3. Cent per cent quality raw material- There are many features of raw material. These features are quality, quantity, shape, size, colour, outlook, internal feature and external features of raw material. It decides the feature of the product. So every organisation wants to purchase cent percent quality feature raw material. Inventory control insures that organisation purchase, store and use cent percent feature possessing raw material. So it is also an important objective of inventory control.

4. To minimum loss of raw material- There are many function of using raw material. These functions are loading, unloading, carrying and so on. It is possible to maximum loss of raw material in above explained activity. Inventory control ensures that there is minimum loss of raw material in above explain activity. So it is also an important objective.

5. Proper management of raw materials - Inventory control is also an important function of management. It also makes policy, programmes, rules, regulations, law towards raw material and it's concern activities. So inventory control ensures that making implementation and execution of policy Is right way that organisation uses their resources by optimum way and achieve the goal of organisation like profit maximisation.