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This document outlines the Inventory Management Policy for Elias Motsoaledi Local Municipality, detailing objectives, procedures, and responsibilities regarding inventory management.
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An inventory management policy is a set of guidelines and procedures that a company uses to manage its inventory levels, including how much inventory to keep on hand, when to reorder, and how to handle surplus or obsolete stock.
Typically, businesses that maintain inventory for their operations are required to file an inventory management policy, including retailers, wholesalers, manufacturers, and other organizations that track inventory.
To fill out an inventory management policy, a company should outline its procedures for tracking inventory, specify stock levels for various items, define reorder points, and establish roles and responsibilities for inventory management.
The purpose of an inventory management policy is to optimize inventory levels, reduce costs, ensure the availability of products, improve cash flow, and maintain accurate financial records.
An inventory management policy must report information such as inventory valuation methods, stock levels for different products, reorder points, supplier details, and procedures for handling damaged or obsolete stock.
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