Study on Inventory Control and its Impact on Profitability
Study on Inventory Control and its Impact on Profitability Abstract Inventory management is critical in day-to-day business operations in order to ensure a steady supply of products at the right moment. Inventory is an essential decision variable at all phases of product production, distribution, and sales, as well as a significant part of many companies' existing assets. Inventory levels that are too high or too low reduce a company's profitability. Consequently, whether a production or merchandising organisation, the objective should always be the same: to guarantee that inventory is ready while remaining at a low level. Inventory management is a finance and production functional area that deals with the efficient and effective utilisation of raw materials and spare parts used in the manufacture of finished products in a manufacturing company. A company that ignores inventory management risks compromising its long-term profitability and may eventually collapse. The decrease o...