## Inventory Control Techniques
Objective of Inventory Control: Achieve maximum efficiency in production with minimum investment in stocks of raw materials, stores, and consumables.
### List of Techniques
| # | Technique | Core Idea |
|---|---|---|
| 1 | Setting of various stock levels | Define reorder, min, max, danger, buffer levels |
| 2 | ABC Analysis | Prioritise control effort based on use-value |
| 3 | Two-Bin System | Simple visual trigger to reorder |
| 4 | System of Budgets | Plan material requirements in advance |
| 5 | Perpetual inventory records + continuous stock verification | Real-time tracking and constant checking |
| 6 | Determination of Economic Order Quantity (EOQ) | Find the order quantity that minimises total cost |
| 7 | Review of slow and non-moving items | Prevent obsolete stock accumulation |
| 8 | Use of control ratios | Quantitative monitoring of inventory performance |
### Two-Bin System (Brief)
Inventory of each item is split into two bins. When the first bin empties, a new order is placed and the second bin supplies material until the new order arrives.