Importance of inventory management, Financial Management

Assignment Help:

Q. Importance of Inventory Management

1) Inventory helps in smooth and efficient running of business.

2) Inventory provide service to the customers immediately or at a short notice.

3) Due to absence of stock, the company may have to pay high prices because of piece-wise purchasing. Maintaining of inventory may earn price discount because of bulk purchasing.

4) Inventory also acts as buffer stock when raw materials are received late and so many sales orders are likely to be rejected.

5) Inventory also reduces product costs because there is an additional advantage of batching and. long smooth running production runs.

6) Inventory helps in maintaining the economy by absorbing some of the fluctuations when the demand for an item fluctuates or is seasonal.

7) Pipeline stocks (also called process and movement inventories) are also necessary where the significant amount of time is consumed in the transshipment of items from one locality to another.


Related Discussions:- Importance of inventory management

Rectification of errors, What is rectification of errors? List and explain ...

What is rectification of errors? List and explain the stages where the errors are deducted for rectification.

Bse-500 and sectoral indices, BSE-500 and Sectoral Indices On August 9,...

BSE-500 and Sectoral Indices On August 9, 1999, another new index was introduced in the market which was based on the data of 500 companies and designated as BSE-500 index. It

Operating cycle, what is the applicability of the operating cycle in a vege...

what is the applicability of the operating cycle in a vegetaion farm in Uganda

Explain the term- maturities, Explain the term- Maturities Debentures a...

Explain the term- Maturities Debentures are sometimes grouped by length of time till maturity that existed on the date debenture was first issued.  Money Market Securities matu

Strategic management, Develop and implement strategic plan using bounce fit...

Develop and implement strategic plan using bounce fitness as case study

Financial accounting, Briefly explain the accounting concepts which guide t...

Briefly explain the accounting concepts which guide the accountant at the recording stage.

Shoppers stop, how are indian customers visiting shoppers stop

how are indian customers visiting shoppers stop

Problems arising due to the existing structure, Problems Arising Due to the...

Problems Arising Due to the Existing Structure The problems that arise as a result of an increase in the population of older generation is universal in nature. Unless there are

Alternative dividend policies, The managing directors of three profitable l...

The managing directors of three profitable listed companies discussed their companies' dividend policies at a business lunch. Company A ; has deliberately paid no dividends for

Warrant, It is a long-term call option to purchase common stock at a specif...

It is a long-term call option to purchase common stock at a specified price.

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