What Role Does Inventory Management Play On Business?

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What role does inventory management play in business? A review in inventory management. Having efficient inventory is a key to having a successful business. When it comes down to it inventory is what makes the profit for the company. It has to do with the overall organization of the company and also the bottom line. It can reflect on the company in a positive or negative way depending on how the inventory is being managed. Having a bunch of money sitting on the shelves of Custom Mills can be a pressing issue. The excess amount of feed and ranching equipment can affect the business in many negative ways. On the opposite end of the spectrum, not having enough inventories can wreak havoc on your finances as a company. When a company relies…show more content…
The inventory being scattered around can cause organization issues. With more inventories, the price of a company’s insurance will most likely rise. The amount of space taken up by hay wire and cattle fence is an issue. This is an issue of opportunity cost. By choosing to have this particular item in stock instead of a more profitable product you incur a cost. In the summer ranchers typically put their cattle on pasture ground so the demand for cattle feed is low. It can be like that for most farm animals including; horses, sheep, and goats. This is huge when it comes to inventory because we know not to stock up on 12 % equine blend like we do for winter. Which would provide more room for the salt licks and mineral licks which are more profitable during this time of the year. The excess amount of Mix 30 leftover during the summer produces a fixable problem when it comes to inventory. Mix 30 for the most part is a liquid feed fed to cattle during the winter to provide energy and protein. An accounting review titled, Does Ineffective Internal Control over Financial Reporting affect a Firm’s Operations? Evidence from Firms’ Inventory Management, says Having inventory available the moment it is demanded by the customer or required for production, with the proper specifications, and at the best cost for the desired quality, sustains
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