Identify and explain the types of costs that are involved in an inventory system, in regards to operations management. Concepts covered include shrinkage, processing and distribution.
Please provide 200 or more words, please. Include references in APA format.
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Identify and explain the types of costs that are involved in an inventory system.
Inventory consists of the products that a company has stored for resale to its customers. Inventory can be separated into three categories: raw materials, semi-finished goods and finished goods ready for sale. There are five types of costs that are typically associated with inventory costs:
1. Ordering Costs: This is the ...
The following posting helps identify and explain the types of costs involved in an inventory system with regards to operations management. References are include in the solution.