Question

explain the importance of inventory management in reference to

1. profitability

2. strategy

3. customer satisfaction

4. competitive advantage

Answer 1

Importance of inventory management are -

1. Profitability - inventory management is important to maintain the profitability of an organisation as maintaining inventory management tells how to share firms fund and how to invest hem. Also helps to maintain the inventory at desired level.

2. Strategy - inventory management also has to maintain the strategy to improve the inventory. it helps to maintain the strategy by checking the level of inventory and figure how exactly how much inventor do you need and have on hand.

3. Customer satisfaction - inventory management maintain the customer satisfaction by providing them return on the product which are damaged or providing them warranty over the product and keeping the customers happy.

4. Competitive advantage - it also helps in competitive advantage by maximize the inventory investment and the net profit.

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