Inventory Control

This control is concerned along with achieving a proper trade-offs among two conflicting objectives as:

(a) Minimizing the cost of holding inventory, remaining inventory to a minimum, in the great, zero inventory, and

(b) Maximizing service to customers needing large stocks on hand from that the customer can decide and instantly take possession.

The types of greatest interest of inventory in PPC system are purchased components, raw material, in-process inventory or WIP, and finished product. The main costs of holding inventory comprise investment costs, costs cost of possible spoilage, and storage. Several mathematical models and algorithms have been recommended to resolve the problem of inventory control. Material Requirement Planning is also a method of inventory control.