INVENTORY MANAGEMENT AND CONTROL IN A MANUFACTURING ORGANIZATION

Abstract: Efficient and effective inventory control and management play a crucial role in the sustainability and success of any organisation. Inventory is a term that refers to a collection of idle resources that hold economic value. These resources can be classed in several ways. Production inventories refer to the assortment of raw materials, parts, and components that are utilised in the manufacturing process of a company's products. Maintenance, repair, and operating (MRO) inventories refer to supplies that are utilised in the production process but do not become a part of the final product. In addition, there are in-process inventories, which consist of semi-finished products found at different stages within the production operation. Lastly, there are finished goods, which are fully completed and prepared for shipment.
These inventories necessitate substantial financial resources and investment commitments. Many business professionals perceive inventories and their associated costs as a "necessary evil," leading them to overlook the potential advantages that inventories might bring to their organisation or industry. In the context of a manufacturing organisation, the implementation of a meticulously designed and efficient inventory control system is vital to ensure profitability and accountability to the company's management and shareholders.