Report on Inventory Managment- Summer trainning
MEANING OF INVENTORY:-
Inventory is the physical stoke of goods maintained in an organization for its smooth sunning. In accounting language it may mean stock of finished goods only. In a manufacturing concern, it may includes raw materials, work-in-progress and stores etc. In the form of materials or supplies to be consumed in the production process or in the rendering of services.
In brief, Inventory is unconsumed or unsold goods purchased or manufactured.
NATURE OF INVENTORIES :-
Inventories are stock of the product a company is manufacturing for sale and components that make up the product. The various forms in which inventory exist in a manufacturing company are raw materials, work in progress and finished goods.
Raw materials are those inputs that are converted into finished product though the manufacturing process. Raw materials inventories are those units which have been purchased and stored for future productions.
WORK IN PROGRESS:-
These inventories are semi manufactured products. They represent products that need more work before they become finished products for sales.
Packaging material includes those items which are used for packaging of perfumery product i.e. cap of the bottle, pump, coller,liver, box etc.
Finished goods inventories are those completely manufactured products which are ready for sale. Stock of raw materials and work in progress facilitate production. While stock of finished goods is required for smooth marketing operation. Thus, inventories serve as a link between the production and consumption of goods.