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Chapter 24
Inventory Control
3.1 Overview
Inventory is a major investment for many entities. It is therefore essential to reduce
the levels of inventory held to the necessary minimum.
Liquidity – Reducing
inventory to the lowest
possible amount to
minimise the level of
capital employed to be
funded
Profitability – Ensuring
that sufficient inventory
is held so that it does
not run out and
disprupt business.
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