Inventory

AUDITING PROJECT PHASE I armoury SUBMITTED TO PROF. ABRAR JAMEEL BY ARSLAN AHMAD ZIA 11-10660 04/11/2010 INVENTORY Inventory means goods and materials, or those goods and materials themselves, held available in stock by a business enterprise. there are one-third types of neckcloth * Raw materials - materials and components scheduled for use in making a product. * Work in process - materials and components that lay down begun their transformation to finished goods. * Finished goods - goods ready for sale to customers. INVENTORY MANAGEMENT Inventory management is primarily ab step up specifying the size and perspective of stocked goods. Inventory management is required at varied locations within a facility or within duple locations of a supply network to protect the regular and think course of production against the random disturbance of running out of materials or goods. The scope of inventory management also concerns the alright lines between replenishment get time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, somatic inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and inquire forecasting.

Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. There are three basic reasons for keeping an inventory: 1. Time - The time lags boon in the supply chain, from supplier to user at every(prenominal) stage, requires that you maintain certain amounts of inventory to use in this lead time. 2. Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods. 3. Economies of scale - Ideal condition of one social unit at a time at a beat where a user needs it, when he needs it teaching tends to incur lots of costs in terms of... If you want to get a full essay, order it on our website: Orderessay

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