Analysis of Inventory Control
inventory control, inventory, economics, manufacturing, stock, supply and demand
Economics | Social and Behavioral Sciences
Most manufacturing firms find real advantages in stockpiling inventories of raw materials or of semifinished products as well as finished assemblies. In many instances, inventories are a necessity. The major advantages to the manufacturer are as follows:
1) Operations in sequence are made relatively independent of each other. We have, in general, a much smoother flow in the production run.
2) With inventory we can offer better services to the consumer.
3) Often managers can and do obtain substantial price reductions if they buy and ship in large quantities.
4) An indirect advantage can be found in the reduction of clerical work done by ordering less frequently.
Hsu, P. (1969). Analysis of Inventory Control (Undergraduate honors thesis, University of Redlands). Retrieved from https://inspire.redlands.edu/cas_honors/778