Inventory Managment and Control System by M.Hashaam.pptx

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

Case StudyInventory Management and

Control System inSIWA Industries (PVT) Ltd.

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.

SWOT Analysis

StrengthsContinously ProductionEffeciently use of Fund’sNo shortage of Material

WeaknessesLow Quality MaterialExtra Investment

OpportunitiesoIncrease in ProductionoEfficient Financing

Threats Increase in Rate of Material

Late Delivery

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.

Thank You