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