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Inventory management concerns

In approximately 500 words, please answer the following four questions concerning inventory management:

1. Why would a company consider holding high levels of finished goods inventory? What are the advantages and disadvantages?
2. Why would a company consider holding low levels of finished goods inventory? What are the advantages and disadvantages of this strategy?
3. Discuss what the components are of calculating the economic order quantity of raw material? How would a company use this concept to its advantage?
4. Discuss what the concepts are of calculating the reorder point? How would a company use this concept to its advantage? hide problem

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Subject: Business Topic: Finance Level: Year 4
inventory management
In approximately 500 words, please answer the following four questions concerning inventory management:

1. Why would a company consider holding high levels of finished goods inventory? What are the advantages and disadvantages?
2. Why would a company consider holding low levels of finished goods inventory? What are the advantages and disadvantages of this strategy?
3. Discuss what the components are of calculating the economic order quantity of raw material? How would a company use this concept to its advantage?
4. Discuss what the concepts are of calculating the reorder point? How would a company use this concept to its advantage? hide problem
Credit Value: 5Deadline: May 16, 2009, 4:26 am

Question 1
A company usually considers holding high levels of finished goods inventory in anticipation of increased demand for the company's ...

Solution Summary

Inventory management concerns are analyzed. Why a company would hold a low or high level of finished good inventory is determined. The advantages and disadvantages of this are determined.

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