Discussion week one ACC214_1

Inventory Controls
Name
Institutional Affiliation
Inventory Controls
The article by Talatu Muhammad Barwa provides information concerning the role of inventory control in strategic decision making towards the growth of an organization (Barwa, 2015). It is understandable that the profitability of the organization is tied in the inventory process for the organization. Therefore, the article is relevant to the discussion linking inventory control with the process of effective decision-making. Besides, the process of good internal controls complementing the model of decision-making, the article asserts that good internal control of the inventory minimizes the costs associated with holding inventory.
Organisations have varying alternatives for inventory control methods. I believe that the selection of the methods depends on the production capacity of the organization as well as the type of inventory. However, if placed in charge of inventory for my company, the method I would implement for inventory control is the ‘just in time’ method. The just-in-time method of inventory control operates based on keeping the stock at the minimum with replenishment to ensure it does not go below the minimum measure.
Other controls that are good for inventory control include the process of stock review, through which the company keeps a check on the stock at regular intervals while placing new orders at the pre-set level (Barwa, 2015). An alternative control for inventory control in an organization involves the use of minimum stock level in addition to batch control.

Organizations also have the choice of implementing the economic order quantity (EOQ), in addition to the first-in-first-out principle of operations. The EOQ formula for minimizing the inventory works by calculating the total inventory through the addition of ordering costs and the holding costs for the company.

References
Barwa, T. M, (2015). Inventory Control as an Effective Decision-Making Model and Implementations for Company’s Growth. International Journal of Economics, Finance and Management Sciences; 3(5): Pages 465-472.