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Inventory Management
SUBJECT : Financial Management
PUBLISHED ON : 16/09/13
NUMBER OF PAGES : ( 11 Pages)
PRICE : Rs 8.25

Inventory is composed of assets to be sold in future in the normal course of business. In simple terms it is the stock of products. Inventories are generally in 3 forms raw materials, semi finished goods & finished goods. The objective of inventory management should be related to the overall objective of the firm. In fact inventory management is a part of production management. Financial management has the objective of turning inventory as quickly as possible. This speed should ensure sufficient inventories to satisfy production and sales demands. These two objectives are contradictory. At one place, the management has to minimize increase in inventory, and at the save time it has to meet demand for the product. These two conflicting object of inventory management can be esplanade in terms of costs & benefits of holding inventory.

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