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APPLICATION OF INVENTORY CONTROL TECHNIQUE IN CONSTRUCTION
Authors: Miss. Monika Ramdas Nanaware, Prof. U. R. Saharkar.
Number of views: 1137
Paper provides details of basic elements of construction material management, role of inventory management in material management including inventory terminologies & classification, Inventory process, inventory control systems, key performance indicators of inventory management systems, inventory models and optimization of inventory with importance of material resources planning to keep just in time inventory. This paper deals with ABC and EOQ Analysis of Construction Company and finally concluding section, project provides detail of financial analysis of effective utilization of inventory models in material management for cost reduction. The concept of inventory management has been one of the many analytical aspects of management. It involves optimization of resources available for holding stock of various materials. Lack of inventory can lead to stock-outs, causing stoppage of production, but a very high inventory on the other hand can result in increased cost of production due to high cost of carrying inventory. Thus optimization of inventory should ensure that stocks are neither too low nor too high. Inventories like finished products, work-in-progress, components, raw materials, stores, spares, etc. account for 80 per cent or more of working capital in some of the representative industries studied in the past. It would appear that any effort put in towards rationalization of inventories can bring about an appreciable saving.
KEYWORDS— Inventory Management, Inventory Process, Inventory Control Systems, ABC and EOQ Analysis, optimization of inventory.