Inventory Control using ABC and VED Analysis

Abstract

The management and control of inventory is difficult problem to all organisations in any sector. Inventory management is very important as it share integral part of working capital. This paper shows the need of inventory management and reduction in inventory cost. It is necessary to maintain inventories without affecting the work. There are different inventory control techniques to handle inventory. But every technique has limitation. In the present work, inventory data of construction materials have been collected from store ledger book and Smart Site ( ) software of company. Inventory matrix is developed using ABC, VED analysis. Inventory cost is calculated using lead time, annual consumption for each category. The inventory matrix helped to reduce inventory cost. Inventory matrix helped in giving better inventory management.