Description
Maintaining inventory on shelves and in warehouses can be quite costly. How would you determine the amount of inventory you should have on hand?
Explanation & Answer
Thank you for the opportunity to help you with your question!
Most retailers think that maximizing sales will lead to flow of non stop revenue. Think of inventory in terms of time.
Have at hand only enough inventory at a given time to support planned sales, until the next delivery. A retailer should also have a safety stock to cover spike in short term or the possibility will be late on his delivery.
A retailer can have the number of weeks of planned sales going forward that is represented in the current inventory. The advantage of thinking in terms of weeks of supply, it places focus on maximizing inventory returns investment as it linked planned sales to inventory levels
Please let me know if you need any clarification. I'm always happy to answer your questions.
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
How to Win Friends and Influence People
by Dale Carnegie
One Flew Over the Cuckoos Nest
by Ken Kesey
Hiroshima
by John Hersey
Where the Crawdads Sing
by Delia Owens
The Handmaids Tale
by Margaret Atwood
Too Much and Never Enough
by Mary L. Trump
The Picture of Dorian Gray
by Oscar Wilde
Little Women
by Louisa May Alcott