Question

How might different functional areas of an organization have different inventory management objectives?

Answer 1

The reason for inventory Management is to maintain inventory such that it is neither too much and nor short of requirements. The inventory level ought to be proper to continue smooth business activities. The lacking and unreasonable inventories are not desirable as that may cause an extra cost.

The different organizational functions may have different management objectives. The general target is to have a balanced inventory. On the off chance that a case of manufacturing organization is considered it is possible to see diverse of objectives of inventory management. It needs to perform well to meet the anticipated demand and to smooth the necessities of the production. The other management functions are to monitor raw materials, ordering perfect amount of quantities, and monitoring work in progress. All the management functions attempt to acquire a appropriate level of inventory.

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