Identify the Efficiency Enhancement Factors in Inventory Management, Reference to Pharmaceutical industry in Sri Lanka- Conceptual Paper

Abstract

Inventory is defined as the goods which are stored by an organization for the purpose of manufacturing or sale. It can be in various forms including raw material, components, work in progress or finished goods. Basically Inventory consists with one of the important items of current assets of an organization, which permits smooth process of operation, production and sales process. As a result of that, proper management over the inventory will be essential; since inventory management is mainly concerned with maintaining optimum investment over inventory and effective control over the system so as to reduce the total inventory cost which adds high cost value to the total logistics cost. This conceptual paper is focusing on to identify factors, which can impact on enhancement of efficiency of inventory management in pharmaceutical industry in Sri Lanka.