Provide examples of how purchasing and inventory controls ar

Solution

PURCHASING AND INVENTORY CONTROLS ARE DIRECTLY RELATED TO INVENTORY BECAUSE SUCH CONTROLS WILL PROVIDE THE EFFICIENT MANAGEMENT OF INVENTORY AND ENSURE A HEALTHY INVENTORY TURNOVER RATIO.AND ALSO THE ORDERING COSTS AND CARRYING COSTS RELATED TO INVENTORY LEVELS CAN BE REDUCED TO A GREAT EXTENT.

EXAMPLES.

1-LIKE CONTROL ON PURCHASE QUANTITY SO THAT PURCHASES ARE AS PER REQUIREMENT CAN HELP IN REDUCING UNWANTED CARRYING COSTS AND ORDERING COSTS RELATED TO INVENTORY.

2-PHYSICAL AND INVENTORY CONTROLS LIKE JUST IN TIME APPROACH OR MATERIAL REQUISITION PLANNING WILL HELP IN REDUCING ADMINISTRATION AND OVERHEAD COSTS RELATED TO INVENTORY.