GMS 401 Lecture Notes - Opportunity Cost, Economic Production Quantity, Fixed Cost

35 views7 pages

Document Summary

Many of the items a company carries in inventory relate to the kind of business it engages in. Inventory management: planning, coordinating, and controlling activities related to the flow of inventory into, through, and out of an organization. Inventory system: is the set of policies and controls that monitor levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be. Not only are they necessary for operations, but they also contribute to customer satisfaction. A typical company probably has 30% of its current assets and as much as 90% of its working capital invested in inventories. One widely used measure of managerial performance relates to return on investment (roi), which is profit after taxes divided by total assets. Inventories may represent a significant portion of total assets, but a reduction of inventories can result in a significant increase in roi.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents