Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

Inventory control involves the planning, organising and controlling the procurement, storage and usage of stock so as to achieve the objectives of efficiency and economy. The various objectives of inventory control are as follows:

1. To avoid the situation of understocking and overstocking.
2. To ensure the procurement of good quality material at minimum cost.
3. To minimise ordering and carrying cost.
4. To avoid wastages and losses during storage and usage.
5. To maintain proper and upto date records of inventory.