Benefits of holding inventories, Business Management

There are three main purposes or motives of holing inventories:

a. The transaction Motive : Which facilitates continuous production and timely execution of sales orders .

b. The precautionary Motive which necessitates the holding of inventories for meeting the unpredictable change in demand and supplies of materials.

c. The speculative Motive which induces to keep inventories for taking advantage of price fluctuations saving in re ordering costs and quantity discounts etc.

Posted Date: 3/25/2013 6:20:15 AM | Location : United States

Related Discussions:- Benefits of holding inventories, Assignment Help, Ask Question on Benefits of holding inventories, Get Answer, Expert's Help, Benefits of holding inventories Discussions

Write discussion on Benefits of holding inventories
Your posts are moderated
Related Questions
Quality is the performance of the product as per the commitment made by producer to the customer. It is the degree of excellence at an acceptable price and the control of v

QUESTION (1) The project lifecycle refers to a logical sequence of activities to accomplish the project's goals and objectives. Elaborate on these basic phases using and exampl

what are the duties and rights or obligations of the leaser and lessee and cases studies to conflicts on either of the two and how they have been resolved?

How is the line and staff functions affected in the organisation? Line and Staff functions: every activities of an organization can be categorised in Supporting and Prima

What are the human relations of a successful manager? Human Relations skill: Human Relations skill considers as the capability to work effectively along with others and b

Question 1 Explain the following security attacks                     a) IP Spoofing                     b) Denial of Service Attack Question 2 Explain the limitations and weakn

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Organisational Planning tool a) Opportunity cost refers cost calculated in terms of the next best alternative choice that is predetermined when a decision is made. In this case

In today's fast-paced work environment a successful organisation is one where diversity is the norm and not the exception. It is the approach to diversity, not the diversity itself

cadbury dairy milk'' online value proposition