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The inventory includes stocks of raw materials semi finished goods finished and components etc, of several description. In order to facilitate prompt recording locating and dealing each item of inventory should be assigned a particular code for proper identification and then must be divided or sub divided in groups on any basis ( location nature of item plants etc) feasible. Special efforts should be made to establish an effective control of high value items. ABC analysis is very much helpful in this regard.
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An efficient inventory control necessitates maintenance of proper inventory records because various inventory records contain information to meet the needs of purcha
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