What are the primary concerns associated with inventory management?

Expert Solution

primary concerns associated with inventory management are as follows:-

1) Firms which funds the inventory with debt have additional interest expense

2) Firms which funds the inventory with equity have an opportunity cost.

3) Inventory may also results in the carrying costs like insurance/storage/taxes.

4) Also inventory , there is possibility that the goods may become obsolete before sale.

5) There is uncertainty in the customer demand and the potential for delay in production.

jeff jeffy answered 2 years ago

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