Inventory occupies a very important part of managers concerns, particularly in the industrial plants where is the ear vital artery feeds the production lines, and without this artery production wheel stop, and that the stock represents a assets and asset elements with high costs in many companies, especially industrial ones, where up in some of them to more than 50% of the invested capital and the threat that the burden on the costs.
Perhaps one of the more departments aware of this fact is the management of production processes, so we find the extent of the focus of this administration on effective inventory control in order to reduce costs, by reducing inventory levels without risking the interruption of production processes due to stock-outs, by achieving a balance between levels investment in inventories and consumer services, and here we see that there is an urgent need for an effective management of inventory.
The concept and the importance of managing the stores:
Is the storage function of important functions exercised by the industrial and commercial enterprises and service alike, but occupies the largest in the industrial establishments importance for being the impact on industrial processes directly by the impact, and the inventory value constitute a large and important proportion of the investment costs, on the other hand, storage function is the function of providing services to all the other functions of the institution.
The storage activity begins where it ends purchasing activity, which reflect the storage function for "activity, which shall preserve the stored items (raw materials and finished goods and parts of semi-manufactured products and spare parts) the same characteristics that have entered it to the stores and secure the flow of such items to the requesting parties according to their needs and the time of need, through appropriate policies and procedures to adopt to achieve it and the adoption of appropriate planning and achieve effective inventory control. "