Amount of protection against storages, Business Management

There is always variation in demand and supply of product. The protection against such unpredictable variations can be done by means of buffer stocks.

a. Changes in Size and Frequency of Orders : The amount of product sold in large number of orders of small size can be operated with fewer inventories .

b. Unpredictability of Sales : If there are too many fluctuations in demand of product then these can be held only by flexible and large capacity of inventory operations.

c. Physical and Economic Structure of Distribution pattern : Longer the channel of distribution the more is the inventory requirement. Field inventories basically improve service to retailers by removing some of the burden of keeping stocks.

d. Costs Associated with Failure to Meet Demands : When there is heavy penalty on any delay in fulfilment of any order then inventory should be large.

e. Accuracy Frequency and Detail of Demand Forecasts : Fluctuations in stock exist when forecasts are not exact. The responsibility of forecast errors for inventory needs should be clearly recognized.

f. Protection against breakdown or other interruptions in production .

Posted Date: 3/26/2013 3:09:03 AM | Location : United States







Related Discussions:- Amount of protection against storages, Assignment Help, Ask Question on Amount of protection against storages, Get Answer, Expert's Help, Amount of protection against storages Discussions

Write discussion on Amount of protection against storages
Your posts are moderated
Related Questions
QUESTION 1 Discuss the main components and functions of the financial system making reference to Rodrigues Island. Suggest measures which could be implemented to develop the fi

relation to material management of the concept and its contribution explen economic order quantity

What are the restrictions of the matrix organisation? Restrictions of matrix organization: a. Matrix organization violates the principle of unity of command as a person w

Managers are directly responsible for the success or failure of any organisation. Their main responsibility is to assist the organisation to achieve its objectives in an efficient

The system analyst must understand the existing problems and strengths and weaknesses of the existing system. Other activities comprise identifying the overall implications and ben

what is the role and significance of quantitative techniques in modern management?

Information system as well allows a firm to develop a strategic information base that is able to provide information to support the firm's competitive strategies. Information in a

I''m kindly asking to make an assignment against "Contemporary Management Issues" in maximum words of 2,500 words as per the attachment. kindly try to finish them as soon as possib

‘Although the elegance and comprehensiveness of transactions costs reasoning has provided the internalisation approach with a powerful logic (Rugman, 1981, 1985), it is still defic

QUESTION Instruction- Read the following case study and answer the questions below Wesley, a newly appointed room attendant supervisor's, productivity has not been as expe