100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Inventory $4.01
Add to cart

Class notes

Inventory

 260 views  0 purchase
  • Course
  • Institution

This document is an introduction to inventories. It explains why one must keep inventories, discard inventories. It also explains the various types of inventories.

Preview 1 out of 4  pages

  • December 26, 2015
  • 4
  • 2015/2016
  • Class notes
  • Unknown
  • Lecture 4
avatar-seller
Inventory Management


Inventory or stock is the accumulation of materials, customers and information as
they flow through processes or networks. They are alternatively called stock. They
can be found at different stages of the operation and not just represent the ‘finished
goods’. They represent an investment in resources and reducing them can release
large quantities of cash. These stored materials compensate in times when there is a
difference between supply and demand.

Inventory Management involves policies and procedures that monitor levels
of inventory. This management is always in accordance to the capacity planning.


Reasons to avoid inventories

1. Storage and handling– the more inventory that is carried, the more space we
need and resources to handle it.

2. Interest and opportunity cost -- money tied up in inventory could have been
used for other purposes (working capital, investment, etc)

3. Property taxes and insurance premiums -- taxes can be assessed on size of
inventory, inventory is considered as a risk (not only because it implies a degree
of speculation) but also in case of damage-insurance on this inventory is
proportional to the size

4. Shrinkage and spoilage -- shrinkage occurs when items are misplaced, stolen
or shoplifted, spoilage occurs when the product is time sensitive (whether it’s
because of customer desirability or quality).


Reasons to have inventories




PREVIEW SECTION --

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller BMAN. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $4.01. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53022 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$4.01
  • (0)
Add to cart
Added