Inventory Control Introduction to Inventory Control Inventory Inventory includes all goods and materials that are used in the production and distribution process. Raw materials, component parts, subassemblies, and finished goods are all part of inventory, as are the various products and supplies required in the production and distribution process.
Inventory is both an asset and a liability.
Too much inventory consumes physical space, creates a financial burden, and increases the possibility of damage, spoilage and loss. Also, too much inventory frequently compensates for sloppy and inefficient management, poor forecasting, haphazard scheduling, and inadequate attention to process and procedures. Too little inventory disrupts manufacturing operations, engenders chaos on the shop floor, and increases the likelihood of poor customer service. In many cases good customers may become irate and take their business elsewhere if the desired product is not immediately available. Inventory Control Inventory Control is the activities, techniques, and methods of maintaining an accurate stock of items at a desired level.