Demand may drop and your inventory may lose all of its value.
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
Actually there is no difference between Inventory holding cost and carrying cost. Its like, you will be able to hold the inventory only when you carry it. So whether you hold the inventory for one year or carry it for one year both are same
Advantage of holding inventory is the reduction of risk of out of inventory and loss of sales and also availing any good sales opportunity which may be loss due to lack of enough inventory stock.
pwede pki lagay ung best answer ng disadvantages ng inventory system sa ibang system. thank you :)
holding inventory basically means 'having'
Demand may drop and your inventory may lose all of its value.
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
The perpetual inventory system is more complicated, requires more accounting entries and is more costly the periodic inventory system does.
A stock holding policy can vary for different types of organizations and companies. Stock can be inventory or bonds. Some business consider a stock holding policy as guaranteeing that they have stock in their inventory. Companies may have a stock holding policy as an issuance of stocks.
A stock holding policy can vary for different types of organizations and companies. Stock can be inventory or bonds. Some business consider a stock holding policy as guaranteeing that they have stock in their inventory. Companies may have a stock holding policy as an issuance of stocks.
Actually there is no difference between Inventory holding cost and carrying cost. Its like, you will be able to hold the inventory only when you carry it. So whether you hold the inventory for one year or carry it for one year both are same
fafa
These are some differences in the general cases.FINISHED PRODUCT INVENTORYRAW MATERIAL INVENTORYUsually there is no lead timeUsually there is a lead timeQuantities reach the inventory individually or by groupsQuantities reach the inventory all togetherThe holding cost is greater than the holding cost for the raw material inventoryThe holding cost is less than the holding cost for the finish product inventoryproduction starts if the inventory is emptyproduction stops if the inventory is emptyUsually is smaller in size than the raw material inventoryUsually is bigger in size than the finish product inventoryQuantity size depends on the demandQuantity size depends on the productionproduction stops if the inventory is fullproduction starts if the inventory is fullExcess quantity in the inventory means marketing methods need to be improvedExcess quantity in the inventory means manufacturing methods need to be improvedproduction quality can be measured in these inventoryproduction quality can not be measured in these inventory
Advantage of holding inventory is the reduction of risk of out of inventory and loss of sales and also availing any good sales opportunity which may be loss due to lack of enough inventory stock.
Stock holding ratio is the same as inventory turnover ratio. To find this ratio one must find the cost of goods sold to a business and its average inventory over a certain time period.
pwede pki lagay ung best answer ng disadvantages ng inventory system sa ibang system. thank you :)