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HAZEL ANN M. GABRIEL


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Inventories are stock of goods held for expected


future use or for potential future use.

÷efined as an itemized list of current assets.


Most business organization carry some forms of
inventory, depending on the nature of the organization¶s
business. These might include raw materials,
purchased parts, work-in process, finished goods,
supplies and spare parts.
The reasons of carrying inventories, and the way that
they are manage similar regardless of the specific
items.
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To meet anticipated demand


To be able to buy or produce in economic lot
sizes
To separate stages of operations
To guard against stock outs
To maintain flexibility in scheduling
To display items in order to accommodate
customer selection
To allow for goods in transit (pipeline)
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Inventory decisions rely heavily on demand
forecasts.

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It includes the time necessary to decide.
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