Whenever an organization comes in to birth, its managing department is the soul for its success and mushroom growth. Big wigs can fail if there are no competent managing departments in the organization. This is why, separate branches of the management sciences have been introduced in order to increase the efficiency of the organization as management keeps all units together. In addition to risk management, performance management, employee management,etc.,inventory management is an important branch which helps in the success of an organization.
Inventory management is responsible for overseeing the products available in the inventory and their outward and inward flow. The inventory management makes sure that there is not any unit in excess nor in little amount in the storage so that the organization’s performance should not come under jeopardy. This management makes sure that the inventory always hangs in the balance when it comes to the units which a company produces and sells.
Functions of Inventory Management:
The functions of the inventory management are as follows:
- The manager of the inventory has to take great care of time. He should be well aware that how much time a unit will take in processing and reaching the inventory so that the material does not get short in inventory.
- Inventory management is also fed with the cost of all the raw items and their subsequent costs in finished form. Inventory management makes sure that the price of an item does not get too high after including all the taxes. It has to be attentive to all costs from production to packaging so that the prices should not get higher.
- Inventory management is also responsible for observing the availability of all raw materials which to be used in completing all the orders. Managers have to make sure that all material is available so that all orders could get complete in time.
- It is also a duty of an inventory manager that he keeps account of all raw materials and makes order for their reach in time so that the processing operation does not come to halt.
- Inventory managementis also liable for keeping all records of the ready products which has to be shipped. They have to be very clever in making calculation. The items for shipping should not be shorter than demanded by the clients. If it happens, inventory managementcan wreck the reputation of the organization.