Explain about inventory economies, Managerial Economics

Assignment Help:

Q. Explain about Inventory Economies?

Inventory Economies:Role of inventories is to aid the firm in meeting random changes in the output and the input sides of the operations of the firm. Purpose of inventories is to smooth out the supply of outputs and the supply ofinputs.

Inventories on spare parts, raw materials and finished products increase with the scale of production though they don't increase proportionately with the increase in size of output. Hence as the size of output amplifies the firm can hold smaller percentage of inventories to meet random changes.


Related Discussions:- Explain about inventory economies

Drafting of price policy, Drafting of Price Policy: Demand forecasts assis...

Drafting of Price Policy: Demand forecasts assist the management to prepare a few appropriate pricing systems, so that level of price doesn't fall and rise to a great extent at th

Help w/ Question, You have opened your own word processing service. You hav...

You have opened your own word processing service. You have already bought a special computer needed for word processing and paid $5,000 for it. However, due to the cost changes in

Vanda-Laye Corporation, You are the new owner of Vanda-Laye Corporation. Yo...

You are the new owner of Vanda-Laye Corporation. You are interested in your company''s cost and revenue relationships as well as its future pricing strategies. Tasks: Analyze how

Rainfall and evapotranspiration values, If the landfill described in Exampl...

If the landfill described in Example had a compacted density of 600 Kg/m3 a refuse  depth of 9 m (29.5 ft), a moisture content of 20% by volume, and a 1-m  (3.25-ft)-thick clay cov

Objective of fiscal policy, Objective of Fiscal Policy As an instrument...

Objective of Fiscal Policy As an instrument of macroeconomic policy, the goals of fiscal policy are likely to be different in different countries and in the same country in dif

Slope of the demand curve and price elasticity, The elasticity of a demand ...

The elasticity of a demand curve is frequently judged by its appearance: the flatter the demand curve, the greater the elasticity and vice versa. However this conclusion is mislead

Transitional unemployment, Transitional unemployment Transitional unem...

Transitional unemployment Transitional unemployment is that situation which prevails due to some temporary reasons.  The main reason for this type of unemployment are:

What is the socially optimal market price, Consider a manufactured good who...

Consider a manufactured good whose production process generates pollution. The annual demand for the good is given by Qd=100-3P. The annual market supply is given by Qs=P. In both

A reduce in supply, a) A reduce in supply and an enhance in demand will cau...

a) A reduce in supply and an enhance in demand will cause the equilibrium:   b)  Which of the following is most likely to cause a reduce in the present demand for  some product X

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd