ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Just in Time Stock control
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Just in Case stock control
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Procurement
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Logistics
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Detailed explanation-1: -Congestion: Companies using the just-in-case inventory system need larger warehouses. Inventory shrinkage and spoilage: Ordering more inventory means keeping it for a longer time. Cash flow: Even with bulk discounts, larger order sizes cost more money. More items •07-Sept-2021
Detailed explanation-2: -Excess inventory can lead to poor quality goods and degradation. If you’ve got high levels of excess stock, the chances are you have low inventory turnover, which means you’re not turning all your stock on a regular basis. Unfortunately, excess stock that sits on warehouse shelves can begin to deteriorate and perish.
Detailed explanation-3: -Excess inventory means extra space needed for storage. Extra space also means extra costs, and since you have to include those extra costs in your price, you might end up losing to competition with other sellers because your price is too high.