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8.1. INTRODUCTION
One of the basic functions of management is to employ capital efficiently so as
to yield the maximum
returns. This can be done in either of two ways or by both, i.e. (a) By maximizi
ng the margin of profit;
or (b) By maximizing the production with a given amount of capital, i.e. to incr
ease the productivity of
capital. This means that the management should try to make its capital work hard
as possible. However,
this is all too often neglected and much time and ingenuity are devoted to make
only labour work
harder. In the process, the capital turnover and hence the productivity of capit
al is often totally neglected.
Several new techniques have been developed and employed by modern management to
remedy this
deficiency. Among these Materials Management has become one of the most effectiv
e. In Materials
Management, Inventory Control play vital role in increasing the productivity of
capital.
Inventory management or Inventory Control is one of the techniques of Materials
Management
which helps the management to improve the productivity of capital by reducing th
e material costs,
preventing the large amounts of capital bei8.1. INTRODUCTION
One of the basic functions of management is to employ capital efficiently so as
to yield the maximum
returns. This can be done in either of two ways or by both, i.e. (a) By maximizi
ng the margin of profit;
or (b) By maximizing the production with a given amount of capital, i.e. to incr
ease the productivity of
capital. This means that the management should try to make its capital work hard
as possible. However,
this is all too often neglected and much time and ingenuity are devoted to make
only labour work
harder. In the process, the capital turnover and hence the productivity of capit
al is often totally neglected.
Several new techniques have been developed and employed by modern management to
remedy this
deficiency. Among these Materials Management has become one of the most effectiv
e. In Materials
Management, Inventory Control play vital role in increasing the productivity of
capital.
Inventory management or Inventory Control is one of the techniques of Materials
Management
which helps the management to improve the productivity of capital by reducing th
e material costs,
preventing the large amounts of capital bei8.1. INTRODUCTION
One of the basic functions of management is to employ capital efficiently so as
to yield the maximum
returns. This can be done in either of two ways or by both, i.e. (a) By maximizi
ng the margin of profit;
or (b) By maximizing the production with a given amount of capital, i.e. to incr
ease the productivity of
capital. This means that the management should try to make its capital work hard
as possible. However,
this is all too often neglected and much time and ingenuity are devoted to make
only labour work
harder. In the process, the capital turnover and hence the productivity of capit