December 2012
Intermediate to advanced
561 pages
22h 33m
English
Content preview from Logistics Management ,3rd Edition by Pearson
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Logistics • 19
inventory for the purpose of extending excellent customer service. However, inventory as an asset
requires investment to possess it. The funds invested are blocked and cannot be used for any other
productive purpose. Moreover, there is a capital cost associated with it. The carrying cost will be
equivalent to the interest on the funds at the bank borrowing rates currently applicable. The carry-
ing cost will be drain on the enterprise profi ts. Hence, the prime objective of logistics is to maintain
the inventory at the minimum level. However, the customer service goal can be managed through
small, but frequent supplies. A higher ...
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