Inventory Managment and Control System by M.Hashaam.pptx
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Financial ManagementTopic:
Inventory Management and Control System
Presented To: Rizwan HamidPresented By: M.HashaamRoll No. : AM552381Class : MBA (B&F) 3rd Semester
Acknowledgment First of all thanks of Allah who is most
beneficent and the most merciful whose blessings are abundant and
favors are unlimited.It is my pleasure to acknowledge the
guidance and support of my subject Teacher: Mr. Rizwan Hamid for her
endless guidance.
An AbstractInventories form a link between the production and sale of a product.
Inventories give the firm flexibility in its purchasing, production
scheduling, and servicing of customer demands.
Financial manager must be familiar with ways to control inventories
effectively.In SIWA Industries(pvt)Ltd. Financial manager invested capital effeciently
in inventories.
Introduction to Inventory Management and Control
SystemInventories form a link between the production and sale of a product. A
manufacturing company must maintain a certain amount of
inventory. Raw-Material inventory gives the firm flexibility in its
purchasing. Without it, the firm must exist on hand-to-mouth basis, buying raw materials strictly in keeping with
its production schedule. Large inventories allow efficient servicing of
customer demands.
ClassificationWhat to Control?
ABC method of inventory control:Method that controls
expensive inventory items more closely than less
expensive items.
Economic Order QuantityHow Much to Order?
EOQ is used to determine the optimal order quantity for a particular item of inventory,
given its forecats usage, odering cost, and carrying
cost.
Order PointWhen to Order?
The quantity to which inventory must fall in order to signal that an order must
be placed to replace an item.
OP= (Lead Time Daily usage)+ Safety Stock
Just-in-TimeThe JIT management philosophy
focuses on:o Pulling inventory on an “as-
needed” basiso Pushing inventory on an “as-
produced” basis.
Inventory and the Financial Manager
Not the direct operating responsibility
Investment of funds in inventory
Familiar with ways to control inventories
Effective Policies
Introduction of SIWA Industries (PVT) Ltd.
Company information SIWA Industries (Pvt) Ltd Was established
in 2006 . We is an exporter of Pakistan Motorcycles products. We have exported
products to many other countries, such as Eastern Asia. We are absolutely capable of meeting various demands from the market.
Importantly, to put quality consisting of product quality and service quality in the first place is our business! We hope that
we can cooperate with more customers from all over the world and sincerely
welcome all of you!
Inventory Management and Control System in SIWA Industries (PVT) Ltd. JUST-IN-TIMEMain parts like Engine’s,
Body, Fiber etc.ABC MethodAll small and other part’s.
ConclusionI conclude that in SIWA
Industrie’s (PVT) Ltd. Inventory Management and Control
system is working affectively.Manager use better ways to
invest in inventory.
RecommendationsI will recommend that
Classification of Inventory should be remove because low
quality material usage decrease efficiency.
Investment should be according to the requirement of
production.
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