What is the aim of inventory control?

What is the aim of inventory control?

Inventory control helps the business in knowing the shortfall and quantities to be ordered considering the net stock available. Thus, it ensures that enough stocks are maintained to meet customer needs, at any point in time.

What are the 3 main objectives of inventory control?

Objectives of Inventory Control To keep inactive, waste, surplus, scrap and obsolete items at the minimum level. To minimize holding, replacement and shortage costs of inventories and maximize the efficiency in production and distribution. To treat inventory as investment which is risky.

What are the objectives of merchandise planning?

Merchandise Planning is “A systematic approach by the retailer, aimed at maximising return on investment, through sales & inventory planning, in order to increase profitability”. Main goal of Merchandise planning is to maximize the use of assets, and resources a company owns.

What is merchandising control?

merchandise control. process of collecting and evaluating data on all aspects of each retail merchandise category, including sales, costs, shrinkage, profits, and turnover. Control is achieved through the maintenance of an inventory book where all data are evaluated.

What is EOQ model?

Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. 1 The formula assumes that demand, ordering, and holding costs all remain constant.

What are the 4 types of inventory?

There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.

How is EOQ calculated?

Also referred to as ‘optimum lot size,’ the economic order quantity, or EOQ, is a calculation designed to find the optimal order quantity for businesses to minimize logistics costs, warehousing space, stockouts, and overstock costs. The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs.

What are the elements of merchandise planning?

The basic components of retail merchandise planning include:

  • Product. First and foremost, the basic component of any merchandise mix is the product.
  • Range. This refers to the variety of merchandise that you sell.
  • Price.
  • Assortment.
  • Space.
  • Perform a post-season analysis.
  • Forecast sales.
  • Plan and implement the assortment.

What are the 4 types of merchandise?

Merchandising can be categorized according to different criteria, but the most common types are product merchandising, retail merchandising, visual merchandising, digital marketing, and omnichannel merchandising.

What are the three levels of merchandising?

The goal of a merchandise hierarchy is to organize your merchandise so that your customers can quickly find what they are looking for.

  • Level One: Store. Your store is the highest level of merchandise hierarchy.
  • Level Two: Department.
  • Level Three: Division.
  • Level Four: Product.
  • Level Five: Class.
  • Level Six: Sub-Class.

What is the EOQ model used for?

The economic order quantity (EOQ) model seeks to ensure that the right amount of inventory is ordered per batch so a company does not have to make orders too frequently and there is not an excess of inventory sitting on hand.

What is EOQ?

The goal of the EOQ formula is to identify the optimal number of product units to order. If achieved, a company can minimize its costs for buying, delivering, and storing units.