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Inventory Management and Financial Stability

Why do you think inventory management has such an impact on the financial stability of a company? Describe techniques that can be used to better control inventory.

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Inventory management affects many areas due to the advantages and disadvantages of how inventory is handled. If inventory is not properly handled and excess inventory sits, it costs the company money. Inventory becomes obsolete, it incurs handling costs, and it ties up money that could have been allocated elsewhere, as the accounts payable from the inventory must be handled in ...

Solution Summary

This solution discusses the impact of inventory management on the company's financial stability.