Evaluate the elements of the carrying cost of inventory


Discussion:

1. Inventory Carrying Costs

Describe and evaluate the elements of the carrying cost of inventory and how it relates to inventory levels and capital investment. How does ABC inventory stratification affect the carrying cost equation?

2. Distribution Systems

Review the Forbes article "Supply Chain Disruption a Major Threat to Business." Based on the content presented in the article, what is the value to the customer and the company in designing efficient and effective supply chain systems for customer relationships, financial processes, and product distribution systems? What steps can be taken to achieve efficiency and effectiveness in the supply chain? How does it apply to your organization?

Response should include examples and be at least 200 to 250 words

 

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Operation Management: Evaluate the elements of the carrying cost of inventory
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