A

SEMINAR ON

TYPES OF INVENTORY

Presented By

Mr. Rohan Jadhav(M724)

Mr. Ritesh Jadhav(M723)

VPM’s Maharshi Parshuram College of Engineering

Department of Mechanical Engineerimg

 Inventory
 Inventory: a stock or store of goods
Independent Demand

A Dependent Demand

B(4) C(2)

D(2) E(1) D(3) F(2)

Independent demand is uncertain.

Dependent demand is certain.
 What are Inventories
 Finished product held for sale.
 Goods in warehouses.
 Work in process.
 Goods in transit.
 Staff hired to meet service needs.
 Any owned or financially controlled raw material, work in
process, and/or finished good or service held in anticipation of a
sale but not yet sold.
 Types of Inventories
 Raw materials & purchased parts
 Partially completed goods called work in progress
 Finished-goods inventories
 (manufacturing firms)
or merchandise
(retail stores)
 Replacement parts, tools, & supplies
 Continue
 Goods-in-transit to warehouses or customers

.
 Other types of Inventories
 Pipeline
 Inventories in transit
 Speculative
 Goods purchased in anticipation of price increases
 Regular/Cyclical/Seasonal
 Inventories held to meet normal operating needs
 Safety
 Extra stocks held in anticipation of demand and lead time uncertainties
 Obsolete/Dead Stock
 Inventories that are of little or no value due to being out of date, spoiled,
damaged, etc.
Function of Inventory
 To help hedge against price increases.

 To permit operations.

 To take advantage of quantity discounts.

 To meet anticipated demand.

 To smooth production requirements.

 To protect against stock-outs.

 Objective of Inventory control
 To achieve satisfactory levels of customer service while keeping

inventory costs within reasonable bounds.

 Level of customer service

 Costs of ordering and carrying inventory

 Inventory turnover is the ratio of average cost of goods sold to

average inventory investment.
Operation Strategy
 Too much inventory

 Tends to hide problems

 Easier to live with problems than to eliminate them

 Costly to maintain

 Wise strategy

 Reduce lot sizes

 Reduce safety stock

•Thank you.....