The Merits of Inventory Management
These are the following important five merits of inventory management.
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Regular supply of material
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Material control ensures regular supply of materials to the factory so the production may not be held up for want of material.
No possibility of over stocking and under stocking
By fixing various stock levels as minimum level, maximum level, ordering level, over stocking and under stocking of materials can be avoided.
Minimum wastage
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Proper material management and control reduces wastage of materials pass stores facilities results deterioration obsspllnces, effleurage, theft, fire evaporation etc. which directly affect the profitability the organisation.
Getting material at reasonable prices
While purchasing materials, it is seen that it is purchased at reasonable low prices but the quality is not to be sacrificed in the plan of low prices.
Adoption of interval check system
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Interval check system is part of material control. Under this system the employees perform their work on rotational basis by which misappropriation of material is minimized.