What is Inventory Control?
Inventory control is the process of managing and overseeing a company’s inventory. It involves monitoring and managing the flow of goods from manufacturers to warehouses and then to retail outlets or directly to customers. The primary goal of inventory control is to ensure that the right amount of inventory is available at the right time, in the right place, and at the right cost. Effective inventory control helps businesses reduce carrying costs, prevent stockouts and overstock situations, improve cash flow, and enhance customer satisfaction by ensuring products are available when needed.
Key Takeaways:
- Inventory control involves forecasting demand, determining optimal inventory levels, and setting reorder points to ensure that stock levels are neither too high nor too low.
- Tracking inventory levels in real-time to know exactly how much stock is on hand, in transit, or in production.
Table of Content
- Types of Inventory Control
- 1. Perpetual Inventory System
- 2. Periodic Inventory System
- 3. Just-In-Time (JIT) Inventory System
- Conclusion
- Types of Inventory Control – FAQs
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