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Pie
3 years ago
9

Explain the tradeoffs involved in setting an ideal level of inventory for a particular product. What are the costs if too much i

s maintained? What are the costs if too little is maintained?
Business
1 answer:
mafiozo [28]3 years ago
5 0

Answer:

An ideal inventory is difficult to have.

Explanation:

  • Inventory is the number of goods and services stored and is accompanied asset and thus management of that asset is a very important aspect of the business.
  • If too much inventory is maintained the inventory can lead to liability. If too little inventory is maintained then it leads to shortages of raw material and work in progress.
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d. Special damages

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3 years ago
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The main purpose of logistics system is to increase the experience of the customer  and to improve profits of the organization. Reducing the cost of inventory may add to the profits of the company.

Managing the inventory is an instinct part of the smooth running of businesses. Recognizing which and how much stock has to be ordered, is useful to continue the inventory levels and content the customers. Timely delivery of the product adds to the customer satisfaction.

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