Objective of Inventory Control

• Inadequate control of inventories can result in both under and over stocking of items.

 • Understocking results in missed deliveries, lost sales, dissatisfied customers and production bottlenecks. • Overstocking results in unnecessarily ties up funds that might be more productive elsewhere.

 • To achieve satisfactory levels of customer service while keeping inventory costs within reasonable bounds 

✓ Level of customer service 

✓ Costs of ordering and carrying inventory