Itqualityassurance
- What are some possible problems with having inventory?
- What are the four 4 categories of inventory?
- Why is inventory management so complicated?
What are some possible problems with having inventory?
Limits cash flow. Reduces profits. Increases storage costs. Heightens risk of product obsolescence.
What are the four 4 categories of inventory?
While there are many types of inventory, the four major ones are raw materials and components, work in progress, finished goods and maintenance, repair and operating supplies.
Why is inventory management so complicated?
Inventory is unpredictable
For businesses with fairly fluid order patterns, knowing how much stock to have on hand can be difficult. This stress is understandable – managers face competing pressures to have enough stock on hand for every eventuality while at the same time avoiding costly, inefficient overstocking.
