Effective management of stocks of finished product is a highly efficient and profitable business is essential. Inventory strategy and decision-making, particularly when the cost of stock to form an important part of the total marketing costs are important to lapse.
Because the consumption and production activities in different times and inventory carrying most of the companies, not avoided, and at different speeds in different locations. Inventories consist of many elements: Operating Co., another consumer demand in the preparatory meetings. Inventory, while another is waiting for shipment at any given time, some stock transfer will be. Finally, there is still stored in the emergency meeting. The full list for the determination of the total.
Inventory management software, to discuss the other hand, the cost of equipment for a part of the surveillance is important. On a wide range of inventory holding costs, said. Their interest in the capital tied up in the list, including the warehouse rent, staff salaries, insurance, fees and taxes, stationery, postage and communication costs, administrative costs, costs of handling, unloading and stacking, loss and damage as a result of deterioration during storage and delivery costs of processing.
When the processing of business inventory, but slowly in the capital is linked in the inventory, the total inventory carrying cost is the main element. In fact, the cost of stock manufacturers are worried about today. Increasing the number of competition in the sector has led to the accumulation of stocks. Not to increase the cost of stock holding in the stock as a result of the increase not only on the level. The increase in the price of the product to the value of the stock to push up costs of products, all caught in the floor. The percentage of inventory leads to higher costs.