What are Functions of inventory controller?

To minimize capital investment in inventory by eliminating excessive stocks. To ensure availability of needed inventory for uninterrupted production and for meeting consumer demand. To provide a scientific basis for planning of inventory needs, to tiding over the demand fluctuations by maintaining reasonable safety stock. To minimize risk of loss due to obsolescence, deterioration, etc. To maintain necessary records for protecting against thefts, wastes leakages of inventories and to decide timely replenishment of stocks.

Inventory control is concerned with minimizing the total cost of inventory. The three main factors in inventory control decision making process are:

• The cost of holding the stock (e.g., based on the interest rate).  

• The cost of placing an order (e.g., for row material stocks) or the set-up cost of production.  
• The cost of shortage, i.e., what is lost if the stock is insufficient to meet all demand.