ECONOMICS

Detailed explanation-1: -So you know how much of each inventory item can be suitably housed, and where to send it.

Detailed explanation-2: -One of the most critical parts of inventory management is calculating the right amount of product units (SKUs) needed in stock at any given time. If your stock level dips too low, you run the risk of running out of products which can lead to missed sales, backordering, and customer service issues.

Detailed explanation-3: -While there are many types of inventory, the four major ones are raw materials and components, work in progress, finished goods and maintenance, repair and operating supplies. While there are many ways to count and value your inventory, the importance lies in accurately tracking, analyzing and managing it.

Detailed explanation-4: -We’ve put together a list of four crucial metrics that you should keep a close eye on over the course of the year: inventory turnover, average days to sell, return on investment, and inventory carrying costs.