Inventory Management Of Nepalese Public Enterprises

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CHAPTER-2

Review of Literature

There are many researches made in inventory Management of Nepalese Public enterprises and Private enterprises. Most of them has made on the manufacturing enterprises. In this chapter attempts has been made to present the review of literature regarding inventory management. 2.1 Conceptual Framework Inventory Management The writer (Saxena, 2009, p. 2) defines inventory as any kind of idol resource that has potential economic value considered as locked up capital. Inventory is a list of goods and materials which is available in stock by business (Saxena, 2009). Other write (Li, 2007, p. 175) defines inventory as the stock of any items or resources used in an organization. Stock consists of all goods and materials that are stored by an organization which is kept for future use (Waters, 2003). According to (Roy, 2005, p. 100) inventory is list of goods or items. Inventory management is the active control program which allows the management of sales, purchases and payments (Inventorymanagement). The author (Saxena, 2009, p. 2) refers inventory management as a process of managing raw materials, semi-finished products and finished-products by a firm. The inventory management is a set of the process and policies that determines what inventory level should be maintained, what stock should be replenished and how large order should be (Li, 2007, p. 175). According to (Toomey, 2003, p. 1) inventory management is a branch of business management which concerned in planning and controlling inventories. Effective stock management means providing the desired stock service level or maximizing your profit while at the same time keeping your total stock costs as low as possible by; Selecting products that initially sell, well and discontinuing those that stop selling. Purchasing the right quantity (how much to buy) Purchasing at the right time (when to buy) Keeping your total inventory investment in balance with the expected levels of sales To control costs and improve profit, it is necessary to actively manage every asset we own. And it is particularly true of the management of goods and material we buy and keep on land either far our own use or for resale. The goal of inventory management is to increase profit on inventory while increasing customer services (Frazelle, 2002, p. 91) The dictionary meaning of inventory is stock of goods or a list of goods. Various authors define the word inventory in their ways. In accounting language may mean stock of finished goods. In a manufacturing concern, it may include raw materials, work in process and stores. To understand the exact meaning of inventory the word inventory we may study it form the usage side and from the point of entry in the operation Among the different aspects of management, inventory management is also one of the major factors to play significant role in management of material , part supplies, expenses tools , working process, finished products and then record on the books and maintenance of store rooms, warehouses by an organization is known as inventory management .

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