The Effect Of Inventory Management On A Manufacturing Company

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Manufacturing Sector Company Name: Ama Greenfield Breweries PLC. Inventory is part of the resources managed by business organizations and this first documented in the year 1601. The necessity for inventory regulation cannot be overstressed as it is a way for refining the functioning of the manufacturing industries. Inventory could be labeled as a confirmation of present business assets such as property, material goods on hand, and the worth of work evolving and work completed but not sold and it is categorized as an existing asset because it can be converted into cash within a brief period of time. Inventory has generated a vast effect on the productivity of the manufacturing organization that lead to the deep research of this subject (H. Quesada-Pineda, n.d). Effectiveness of inventory management in a manufacturing company Inventory participates as a main character in the setup of many businesses and manufacturing firms. In production, inventories of natural resources permit enterprises to function autonomously of their sources of provisions. Daily processes are not reliant on transports from supplies hence the reserve of the essential materials is preserved and used as required. Lacking inventory control, millions of dollars could be lost a year as of non-accountability of supplies and imprecise checks and balances. The practice of control and administration of inventory is an important aspect of the success or failure of any business (H. Quesada-Pineda, n.d). Woods
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