The importance of proper inventory management hardly needs underlining. Too much inventory means too much money tied up in stock: money earning nothing for the business. This excess can be due to the retention of obsolete stocks; more likely it will be due to too high a level of the normal items currently being produced and sold. Too low a level of inventory brings its own problems. If stock is not available when ordered by a customer the trading relationship is in jeopardy and further sales may be lost. It follows that finding and maintaining the right level is a matter that demands attention.
Unable to display preview. Download preview PDF.