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Reflection Paper On Inventory Control Fundamentals

Inventory control involves managing a company's inventory levels across locations to optimize cash flow and reduce costs. It covers obtaining, storing, and profiting from raw materials and finished goods. Effective inventory control is important for quality control, organizational control, and accounting accuracy, allowing companies to track stocks, ensure quality and utilization of resources, and maintain accurate records for audits.

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Tetet Chua
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414 views2 pages

Reflection Paper On Inventory Control Fundamentals

Inventory control involves managing a company's inventory levels across locations to optimize cash flow and reduce costs. It covers obtaining, storing, and profiting from raw materials and finished goods. Effective inventory control is important for quality control, organizational control, and accounting accuracy, allowing companies to track stocks, ensure quality and utilization of resources, and maintain accurate records for audits.

Uploaded by

Tetet Chua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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REFLECTION PAPER ON INVENTORY CONTROL FUNDAMENTALS

JANE RIZZLE A. SAYRE


Inventory control is the process of managing a company’s inventory levels, whether that

be in their own warehouse or spread over other locations. It comprises of items from the time

that the business have in stock to the final destination or the disposal. Effective inventory control

is vital for any business, it allows businesses to optimize cash flow and reduce resources spent.

On the other hand, inventory management is a broader term that covers how you obtain,

store and profit from raw materials and finished goods alike. The right stock, at the right levels,

in the right place, at the right time and at the right cost.

Inventory Control is important and essential in every organizations, not just businesses as

inventory control involves quality control. With this, the firm can track all incoming stocks and

by that they can determine right away of its quality. If being part of the inventory controls team,

they would know whether the stocks available will be the required quality for the production of

outputs that will be offered to the customers.

Furthermore, it also is important as it implies the company’s organizational control. If

there is a well-organized management of stocks, it just means that the merchandises are well

utilized and investments in physical inventory are properly used.

Lastly, it promotes accounting accuracy. Keeping an accurate record of the inventory is

vital for managing the company’s assets. In times of audit, it will not be difficult for the

company to track the incoming and outgoing of the physical inventories and can keep track

whether there are still enough resources because if in case not, they can already purchase for new

stocks so that the operations will not be hampered.

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