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INVENTORY MANAGEMENT Inventory-Management (6. Costs that involved in…
INVENTORY MANAGEMENT 
1. Inventory Management
Inventory is commonly thought of as the finished goods a company accumulates before selling them to end users. But inventory can also describe the raw materials used to produce the finished goods, goods as they go through the production process (referred to as
"work-in-progress"), or goods that are "in transit."
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-list of tangible goods or property, or the intangible attributes or qualities.
-The value of materials and goods held by an organization
Funtion of inventory
-marketing and production to increase profitability,
-to get the maximum amount for the business' investment
-to support production (raw materials, subassemblies, work in process.
-for support activities (repair, maintenance, consumables)
-for sale or customer service
EOQ (Economic Order Quantity)
- the optimum quantity of goods to be purchased at one time in order to minimize the annual total costs of ordering and carrying or holding items in inventory.