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Inventory control

Inventory control coordinates ordering, receiving, storage, issue and record keeping so materials are available when needed without excessive investment, deterioration or loss. Authorised source documents and comparisons of physical quantities with records help detect discrepancies. Order quantities and reorder timing are separate decisions. Balance ordering and holding costs with service requirements, lead times and stockout risk rather than treating minimum inventory as an objective regardless of operational consequences.

Worked example

A storekeeper records receipts, issues material only against authorised requests and investigates a count shortage before approving the ledger adjustment.

Common mistake

A correct mathematical reorder quantity does not remove the need for reliable records, supplier performance monitoring and physical safeguards.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027