• Inventory can hold a lot of money in investment for any manufacturing or trading company. It is an important asset. So, it must be handled with a lot of care.
• Inventory levels and total investment in inventory must be regularly watched by the business leaders.
• Inventory of non-moving items must be taken care of as per the most appropriate action.
• We must make a complete list of various items, of which we wish to manage the inventory.
• All the issue, receipt transactions of every item must be recorded properly.
• We must follow a practice of physical counting of inventory at regular intervals. The frequency of such counting may be decided differently for different classification of items, depending upon their value, number and criticality in nature.
• The physical stock levels must be reconciled with paper stock level after each physical counting of the inventory.
• We should determine Minimum Stock Level, Maximum Stock Level, Reorder Level, Buffer Stock, Optimum Order Quantity etc. for each important product in our inventory.
• It is advisable to use a software system to track inventory levels.
• The inventory of Finished Goods must be maintained as per sales orders and sales forecast.
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