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  1. #1
    Join Date
    Jun 2012
    Posts
    8

    Case study on Inventory Management.

    Inventories are materials and supplies that a business or institution carry either for sale or to provide inputs or supplies to the production process. All businesses and institutions require inventories . Often they are a substantial part of total assets. Financially, inventories are very important to manufacturing companies. On the balance sheet, they usually represent from 20% to 60% of total assets.

    Inventory Management ties up capital, requires handling, uses storage space, deteriorates, sometimes becomes obsolete, requires insurance, incurs taxes, can be stolen or gets lost. Inventory must be considered at each of the planning levels with production planning concerned with overall inventory, master planning with end items and materials requirements planning with components parts and raw material. The primary function of inventory is buffering and decoupling. It serves as a shock absorber between customer demand and the manufacturer’s production capability, between input materials required for an operation and the output of the preceding operation, between the manufacturing process and the supplier of raw materials.

    For more Information on Case Study on Inventory Management Visit on Casestudy.co.in

  2. #2
    Join Date
    Sep 2012
    Posts
    20
    does inventory has to be mentioned in annual balance sheet

  3. #3
    Join Date
    Jun 2012
    Posts
    8

    Hi

    Quote Originally Posted by john_mathew View Post
    does inventory has to be mentioned in annual balance sheet
    Thank for reading..

    As per your Question does inventory has to be mentioned in annual balance sheet ?

    It Depend on Company which deal into this. Eg. Warehouse is a best eg.

  4. #4
    Join Date
    Sep 2012
    Posts
    32
    yes,inventory should be mentioned in the balance sheet.

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