Tally Training in Chandigarh (2)

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• Tally Training in Chandigarh

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• Today
• We Will Discuss
• About Motives Of Holding Inventories
• With
• Tally Training In Chandigarh

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The motives of holding inventories are

1. Inventories Motives
2. Precautionary Motive
3. Speculative Motive

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Motives of Inventory Management

• Inventories Motives Every firm has to maintain
  some level of inventory to meet the day to day
  requirements of sales, production process,
  customer demand etc. This motive makes the firm
  to keep the inventory of finished goods as well
  as raw materials.

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Precautionary Motive

• Precautionary Motive A firm should keep some
  inventory for unforeseen circumstances also. For
  Example, the fresh supply of raw material may not
  reach the factory due to strike by the
  transporters or due to natural calamities in a
  particular area.

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Speculative Motive

• Speculative Motive The firm may be tempted to
  keep some inventory in order to capitalize an
  opportunity to make profit e,g, sufficient level
  of inventory may help the firm to earn extra
  profit in case of expected shortage in the market

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