How can inventories be controlled?
Inventory Control systems are designed to monitor the levels of inventory and to design systems and procedures for effective inventory management. In establishing systems to manage inventory, there are two important decision areas – (1) classification of inventories and (2) accuracy of inventory records. The inventory control strategies include the following: • ABC Analysis – this is a technique that classifies the company’s inventories according to three classifications on the basis of annual $currency_text$ volume .
