3.Explain five costs that involved in inventory management
human capital costs
-it is the measure of the economic value of an employee's skill set
-the concept of human capital consume that all the employee is not the same quality
-it can improve them by educating, experience, and investing in them.
-is the cost and interest and other charges involved in the borrowing of money to build or purchase assets
-the costs that also involved in having a project or getting the equipment
-Cost management is the process of planning and controlling the budget of a business
-this costs also help in controlling and predict the expenditure
-identifying right needs
-managing suppliers which contribute to competitive advantage hiring/ leasing/ outsourcing
inventory turnover costs
-is the Inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year.
-the equation for inventory turnover equals the cost of goods sold or net sales divided by the average inventory.
4.Briefly explain three service classes in inventory management.
-product that need in quickly in time.
-for example is medical and emergency
product that not necessary urgent such as computer,building material
-delivery that customize between particular customer. it based on the planning of delivery. it must follow the customer need
5.What are the strategies to better manage inventories?
vendor manage inventory
-pay when need it to better manage
-postpone the final goods from the market.
1.Define inventory management
practice of overseeing and controlling of the ordering, storage and use of components that a company uses in the production of the items it sells
it also the process of controlling the finished product
2.What are the basics in inventory management
a. inventory basic
start with vendor supplier, distributor, and until it reach to the customer
divided to four part
-stock keeping unit
-unit of measure