ABSTRACT
Inventory management is an increasingly important business activity, and is often the differentiating factor in the success of a company. It is not generally recognised that inventory management is a profession requiring advanced techniques and a high level of expertise. The physical control of inventory, including stores, despatch and movement, is a separate discipline, managed by a parallel organisation which provides the basic data for inventory management. Senior managers have to be aware that the art of correct management is to set targets that meet company strategy, but which are both achievable and challenging. Inventory management must also meet general business objectives. Inventory control data comes from the physical recording of warehouse movements both locally and from remote stores and the supply chain. Good systems produce information which can be used without amendment by the inventory controller. Standard costs are used widely in manufacturing, as they stabilise costs and overheads and provide better budgetary control.
