An inventory is defined as stock of goods, may be in the form of raw materials or finished goods.
Inventories are considered as a buffer against uncertain supplies. But at the same time, lower inventory levels save financing and storage costs.
The concept of zero inventories is very appealing but this approach is not practically feasible.
Inventory problems involve finding the optimum level of inventory to avoid shortage or surplus situation.
Quality of inventory is important because defective inventories involve extra purchasing and carrying costs.
Unit cost of inventory is the cost to procure its unit quantity. This cost is independent of quantity of inventory produced. ...
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