Meaning of Inventory and Inventory Management
- Inventory management and inventory control can be defined as follows:
- Inventory management is the planning, organising, monitoring and controlling of all aspects of inventory and the motivation of all people involved to achieve inventory objectives safely and within defined time, cost and performance standards.
- Inventory control is the actual steps taken to maintain proper stock levels in all types of materials kept (such as raw materials and finished goods).
- Inventory has been defined as:
- those stocks of items used to support production (raw materials and work-in-process items);
- supporting activities (maintenance, repairs, and operating supplies);
- customer service (finished goods and spare parts).
- Inventory is materials in a supply chain or in a segment of a supply chain expressed in quantities, locations, and/or values (synonym stock).
- Inventory means items kept by an organisation for eventual sale/use.