What is your opinion on this statement in terms of the objectives of a good equipment inventory control system?

All organizations, private sector as well as government agencies, maintain inventories of supplies and materials. There are two aspects to inventory management, supply control, and inventory control. Supply control covers the availability of inventory to meet anticipated needs. Effective supply control ensures that sufficient quantities of supplies and materials will be on hand to meet program needs, but at the same time, the stock levels will not be so high as to cause unnecessary inventory “carrying” costs. Inventory control covers accountability for items received. Inventory controls should ensure that quantities received are accurately recorded, accounted for until used, stored in an accessible manner, and kept safe from loss due to theft, damage, and deterioration. Effective inventory control requires cost-effective receiving, storing, and accounting systems. The objectives of an efficient inventory control system include the following:

• Maintain uniform accountability for the organization’s equipment and property. The primary responsibility for control of equipment rests with the officials to whom equipment is assigned and these procedures will ensure uniform accountability over the processing, accounting, and managing of the organization’s equipment and property.
• Assist employees in pursuing their specific goals and responsibilities regarding equipment and property including security, utilization, maintenance, and disposal of equipment. Each employee in each department is responsible for taking precautions to prevent the loss or theft of property. Valuable equipment should not be left unattended
• Provide a basis for projecting and budgeting future capital replacement and other needs to meet the objectives of the Organization. It also helps department to avoid duplicate purchase of the equipment during useful life of the equipment.
• Ensure compliance with basic standard equipment control guidelines promulgated by the Offices of the State and the City Comptroller requiring all departments and agencies to establish and maintain control over equipment and to implement a system of equipment control to provide a safeguard against loss and to facilitate effective utilization including determination of equipment need and identification of surplus.
• Help in maintaining adequate inventory level in the organization avoiding additional inventory carrying and maintenance cost for the organization. It avoids situations like stocking insufficient inventory or excessive inventories. Investing in additional capital assets costs money, so there should be a limit to how much equipment can be on hand to cover assets out of service for maintenance. If, because of a lack of spare parts, equipment is out of service for periods longer than planned, there may be insufficient available equipment to provide the anticipated level of public service.