Question.695 - Why does a firm need inventory? Why is excessive inventory bad? What can a company do to reduce its inventory levels without sacrificing customer service?
Answer Below:
Address xxxxxxxxxx in xxxxxxxxxxxxx requirements xx changing xxx capacity xxxxxxxx in xxxxxxxxxx with xxxxxxxxx projections xxxxxx and xxxxxxxxx trends xxxxxx As x result xxx requirement xxx bulk xxxxxxxxxxx for xxxxxxxxxxxxx changes xxxx with xxxxxxxxxx strategy xx respect xx exact xxxxx and xxxxxx amounts xxxxxxx inventory xx a xxxxx facility xxxxxx you xx send xxx needed xxxxxx and xxxxxxxxx to xxxxxxxxxx on xxxxxxxx Provide xxx periodic xxx recurrent xxxxxxxxxxx Market xxxxxxxxx and xxxxxxxxx are xxxxxxxx based xx variables xxxx as xxxxxxxxxxx events xxx therefore xxxxx marketing xxxxxxx assist xxxxxxxxxxxx in xxxxxxxxxxxx a xxxxxxx rise xx desire xx the xxxxxxxx effectively xx preparation xxxxxx As x result xxxxxxxxx stockpile xxxxxxxxxxx and xxxx stockpiles xx order xx expand xxxxxx and xxxxxxxx supply xx the xxxxxxxxxxx in xxxxx that xx may xxxxxxx the xxxxxxx needs xxxxxxxx Transport xxxxx and xxxx taken xxxx importing xxxxxxx supplies xxxx an xxxxxxxx nation xx through x distant xxxxxxxx inside xxx state xxxx purchasing xxx transferring xx sea xxxxxxx could xx expensive xxxxxx inventory xxxxx help xx stockpiling xxx supplies xxxxxxxxxx frequent xxxxxxxxx Muller xxxxxxxx shipping xxxxx be xxxx expensive xxxxx it xxxxxxx on xxx higher xxxxxxxxx of xxxxxxxx more xxxxx the xxxxxxxx could xx subjected xx taxes xxxxxx inventory xx frequently xxxxxx by xxx forecasting xxx buying xxxxx includes xxxxxxxxxxxxxx consumption xxx acquiring xxxxxxxxx incorrect xxxxxx which xxxx to xx increase xx reshuffling xxx entire xxxxx sending xx back xxx forth xxx receiving xxxxxxxxxxx items xxxxxxx to xxxxxx cost xxxxxxxxxxx If xxxxxxxxxxx for xxxxx products xxxxx below xxxx for xxxx any xxxxxxxx duration xxx outcome xxxx be xxxxxxxx stock xxx firm xxx implement x strategy xx work xx lower xxx overall xxxxxxxxx expenditure xxxxxxx losing xxxxxxx some xx the xxxxxxxxx ways xxx to xxxxxxxx the xxxxxx rather xxxx sales xxxxxxxxx the xxxx of xxxxxxxxx from xxx inventory xx accordance xx reducing xxx supplier xxxx such xxxx the xxxxxxxx to xxx target xxxxxxxx segment xxxx not xx hampered xxxxxxxxxx the xxxxx cycle xxx ordering xx a xxxx demand-driven xxxxxx is xxx key xxxxxxxx Muller xxxxxxxxxx Muller x Essentials xx inventory xxxxxxxxxx HarperCollins xxxxxxxxxx PRs xx thank xxx for xxxxxxx your xxxxxxx One xx the xxx reasons xxx having xxxxxxxxx is xxxxxx from xxxxx inflation xxx price xxxxxxxxxx if x price xxxxxxxx is xxxxxxxxx a xxx months xxxx the xxxx owing xx changes xx demand xxx supply xx the xxxxxxxx or xxxxxxx market xxx influence xx surcharges xxx budgets xxx companies xxxxxx to xxxxxxx raw xxxxxxxxx in xxxxxxx and xxxxx stockpiles xx a xxxxx against xxxxxxxxxx costs xxxxxxxxx that xxxx to xxxxxxx with xxxx quantities xxx sustain xxx raw xxxxxxxx stocks xx take xxxxxxxxx of xxxxxxxx discounts xxxxx by xxxxxxxxx In xxxx circumstances xxx savings xxxx the xxxxxxxx would xx significantly xxxx than xxx inventory xxxxxxxx cost xxxx lead xxx high-demand xxxxxxxx must xx kept xx stock xxx material xxxxxxxxxx from xxxxxxx can xxxx months-long xxxx times xx thank xxx for xxxxxxx your xxxxxxx One xx the xxxxxxx ways xx cut xxx cost xx inventory xxxxxxx is xx decrease xxx overall xxxx time xx the xxxxxxxxx One xxxx example xxxx I xxx interning xx a xxxxxxxxxxxxx sector x was xxxx to xxxxxx how xxx firm xxx able xx mitigate xxx alter xxx flow xx shipment xx reduce xxx inventory xxxxxxx cost xxxx as xxxx invested xxx time xx expand xxx holding xxxxxxxxx facility xxxxxx than xxxxxxxx in xxxxxxxx shipping xx the xxx materials xxx firm xxxxxx one xxxxx order xxx procured xx for x longer xxxxxxxx since xxxxxxxx shipping xx raw xxxxxxxxx from xxxxxxxxxxxx nations xxx subjected xx various xxxxxxxx and xxxxx regulation xxxxxxxxxxMore Articles From Operation Management
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