Purchase Solution

Production Management: Inventory System Costs

Not what you're looking for?

Ask Custom Question

(Production Management) Identify and explain the types of costs that are involved in an inventory system. 200-300 words APA

Purchase this Solution
Solution Summary

This solution defines inventory system and discusses ordering cost, shortage cost, production cost, and holding cost. This solution addresses the queries posted in 501 words with references.

Solution Preview

The response addresses the queries posted in 501 words with references.
//Prior to talk about the types of costs involved in an Inventory System, firstly, we will have to understand about the 'Inventory System'. So, initially, we will write about this system under the heading of Introduction, for example: //

Introduction:

Inventory system is mainly related to the overall target of the business firm. This system empowers an organization to fulfill or exceed customer's promises of product availability, while increasing net profit or owner's capital or the understating costs. Inventory management highly considers stock of goods, commodity cost, maintenance material, office material, etc. Thus, it is conceived that only with assistance of effective inventory management, an organization can easily attain maximum level of output at the minimum cost ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • JIT: Inventory Control, Advantages And Disadvantages

    The objective is for the company to meet production targets and ultimately, buyers' demand. As noted by Keown et al. (2002), JIT is more than just an inventory control system; it is a production and management system.

  • Risk in the Production Cycle

    The following inventory control management techniques may be applied: 1. Economic Order Quantity ( EOQ) This is an inventory management technique that allows the company to minimize both the ordering and carrying costs.

  • Smitheford Pharmaceuticals

    -Explain the concepts of forecasting, system design, capacity planning, quality management and control, supply chain management, inventory management and scheduling, and project management and how they each relate to form an integrated view of production

  • Expenditure and Production Cycles

    Different costs can be assigned to various cake sizes decorated. Different costs can be assigned to different cake types decorated. The system has the ability to assign costs to batches of cakes produced.

  • Management Accounting Problems

    Assuming a weighted average system, what dollar value would be reported as total Ending Inventory? Round all equivalent unit costs to four decimal places.

  • Lean Manufacturing

    In addition, the pull system reduces the costs associated with inventory to minimal levels.

  • Economic Order Quantity: Minimizing Ordering and Inventory Costs

    474888 Economic Order Quantity: Minimizing Ordering and Inventory Costs As the production manager, you need to minimize both ordering and inventory costs.

  • Asset Management and Financing

    Asset management and financing What are pros and cons of just-in-time (JIT) inventory system?

  • Lean Production and Just-In-Time Inventory

    An optimum inventory level allows the management to save on the rent and insurance costs incurred in maintaining inventory.

View More Related Solutions