Statistical Analysis of Effectiveness of Inventory in a Manufacturing Company
Keywords:
Inventory, Financial Statement Inventory Level, Economic Order Quantity (EOQ), Reorder Point, Production, Just in Time (JIT), Enterprise Resource Planning (ERP)Abstract
Inventory levels in production play an important factor in the cost control of the products. Organizations have to find out ways to control their costs to remain competitive. Inventory levels are to be maintained judicially, less stock in Inventory will mean disruption in production and more Inventories will mean idle investment. The problem of control becomes more acute when more number of items is stocked in the Inventory. Always Better Control (ABC) is used to identify the most important items in the Inventory, the Economic Order Quantity (EOQ) helps in calculating the Quantity of Order to be placed and a Reorder Point prevents stock out situations.
How to cite this article:
Chakshu R, Chauhan BK. Statistical Analysis of Effectiveness of Inventory in a Manufacturing Company. J Adv Res Prod Ind Engg 2020; 7(2): 11-16.
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