Notes On Inventory Control And Management

Partially determined the types of inventories these companies currently manage; Partially described their essential inventory characteristics.

3 types of goods that classify as inventory are goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies).

Specialisation. Inventory allows each of a company’s plant to specialise in the products that it produce. Instead of manufacturing a variety of products, each plant can manufacture a product. Then the finished products can be ship directly to customers or to a warehouse for storage. By specialising, each plant can gain economies of scale through long production and cost savings in transportation. The specialized facilities known as focused

Merchandising inventory is goods that have been acquired by a distributer, wholesaler, or retailer from suppliers with the intent of selling the goods to third parties. (Accountingtools.com, 2015) When choosing the type of method to use for merchandising inventory it is important for the business to understand what type of services or goods that are being provided. This can offer a better insight to the proper and most cost effective method. When deciding there are four types of inventory cost methods to elect from.

The Inventory table contains the components that make up an Item. It is used for managing inventory and determining the availability of ingredients that go into prepared items, such as bakery products, etc. Each record in the inventory table is linked to the Item table by the item_id and to the Supplier’s table by the supplier_id.

Merchandise Inventory is a material acquired by a retailer for the purpose of selling it to the third party. The three methods

A risk to the auditor due to the complexity of physical inventory includes the possibility of which of the

Within the manufacturing industry in general most organizations, not using Just in time inventory (JIT), have inventory in stores, warehouses etc for consumers to purchase. The amount of inventory held relies on areas such as demand, cash flow and even company requirements or policies dictating the requirement. Conversely, within the service industry there is again no tangible inventory as consumers are able to receive their service without ever touching it. They are provided the services paid for when the customer purchases them.

Merchandising Inventory- These are items bought by the companies suppliers in order to keep stock.

An example of inventory is the liquor inventory at a bar. Managers at a bar track their inventory by comparing the number of drinks sold by how much liquor is left in the bottles at the end of the day. By looking at receipts from customers orders and

Inventory is counted as an asset though, and when it is produced an sold, it counts as a sale. The inventory is evaluated once a year, and the inventory should have be appropriately reduced by the consumption of the product, and everything stays balanced out.

i. “Inventories, net.” – If a company purchases products to be resold, there is an adjustment on the balance sheet to reflect this net inventory.

Inventory management has two very different, but effective methods: Vendor managed inventory, and consignment inventory. A company may choose to utilize either of these two methods to manage inventory. If a company is able to manage inventory, they will be better able to work the company's capital to the fullest extent. The following paper will identify the differences between the two as well as identify what type of company is best suited for each method.

Inventory itself is a list of products that a company has available for sale to customers. So what is Inventory Management? By definition according to BusinessDictionary.com, “Inventory Management is policies, procedures, and techniques employed in maintaining the optimum number or amount of each inventory item”.

The completion of this study has inevitably involved various kinds of inputs from different people to whom Iam indebted.