MANAGEMENT

Detailed explanation-1: -One important use of inventories in manufacturing is to decouple operations through the use of work in process inventories. The objective of inventory management is to minimize the cost of holding inventory. The two main concerns of inventory control relate to the costs and the level of customer service.

Detailed explanation-2: -In manufacturing, inventory consists of in-stock items, raw materials and the components used to make goods. Manufacturers closely track inventory levels to ensure there isn’t a shortage that could stop work.

Detailed explanation-3: -What Is Decoupling Inventory? Decoupling inventory is the term used when product manufacturers set aside extra raw materials or work in progress items for all or some stages in a production line, so that a low-stock situation or breakdown at one stage doesn’t slow or stop operations.

Detailed explanation-4: -Decoupling inventory is the process of setting aside extra parts or raw materials to ensure there aren’t any delays or disruption in the production of finished goods in the event of a supply shortage or machinery breakdown.

Detailed explanation-5: -One of the most valuable assets of a company is its inventory. In various industries, such as retail, food services, and manufacturing, a lack of inventory can have detrimental effects. Aside from being a liability, inventory can also be considered a risk. It can be prone to theft, damage, and spoilage.