Inventory: types and planning


2018-03-21 14:21:07




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Table of contents:

inventoryThe High degree of competition in the market makes the need to implement such activities as planning, inventory. Determination of their optimal number allows you to reduce costs while maintaining the capacity of the organization to make adjustments in production. The stock represents the totality of the products which are intended for sale and is located in the sphere of circulation. It may be in the process of transportation, in the warehouse and in the store. The availability of the necessary volume of this category – a prerequisite for the continuity of the production process. The stock is created for a particular purpose. The continuity of production to fully meet existing needs of the population, improved service quality and increased competitive advantage of the whole enterprise.

The Functions of inventory

The First of these is ensuring the smooth circulation and production, resulting in its constant formation and consumption. The second important feature – the satisfaction of the effective demand of the population, as the stock is in the form of suggestions. And last but not less important. The stock is able to characterize the existing relationship between volumes and structures of such categories as demand and supply.

The Factors of

View inventoryFirst, the reserves are formed at any stage of distribution, as have a place to be seasonal fluctuations in the production process and in consumption. The second factor – the period of time required for transportation. It is also important the need for transformation to create the trade of goods of current production. This is used for sorting, packing and other processes. The fourth factor-the presence of the distance between the direct supplier and trade organization. In addition, we must not forget about necessity of creation of reserves and insurance reserves, which would ensure the uninterrupted operation of this complex system. There are also many other factors that have a direct impact on the formation of reserves.


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Types of inventory

Here you can review some of the classification criteria.


To distinguish between inventory, in transit, in a business or trade organization.

On purpose

This feature divides the object in question on stocks of early delivery (typical for remote areas, ensure continuity of production); the current storage (the main share belongs to them; required to meet the daily needs of the population); seasonal accumulation (fur, vegetables, all kinds of fruit).


Planning inventoryThe stock is divided into absolute and relative.


This feature allows to distinguish the following types: average, maximum and minimum stocks.


Inventory should be proportional to the volume of trade organizations. This requires competent management system. It should include regulation, operational accounting and related control and regulation.

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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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