Answer to Question #305398 in Management for cessy

Question

how inventory management contributes to least total cost logistics

Answer 1

By using the economic order quantity (EOQ) calculation in your organization, inventory management software may help you save money on storage. This method takes into consideration storage expenses and assists you in determining the best time to repurchase items so you don't overspend on storage. Any organization that supplies materials or transports goods rely heavily on logistics management. It's an important part of the supply chain. Understanding how it works and why it's vital may have a big influence on a business's bottom line. When supply chain logistics are tightened, you may expect to see a variety of advantages, including enhanced visibility, fewer or no shipping difficulties, higher customer fulfillment numbers, and lower risks. Inventory management is crucial in the supply chain since it is the key to long-term success. Inventory may play the most important function in supply chains by balancing demand and supply characteristics. The size of the firm determines how well inventory is managed.