Post by account_disabled on Mar 11, 2024 21:35:37 GMT -8
The long shelf life compared to materials in the food industry such as fruit and vegetables. So that the value of stock items does not decrease there are methods used by companies to manage stock in their inventory . First In First Out FIFO First in first out is one of the methods used by companies to manage their stock where the goods purchased are goods that are immediately sold. items that have a short shelf life. A short storage life means that the longer it is stored the less the monetary value of the stock will decrease.
The company will try to sell existing stock so as not to experience losses before Job Function Email List new stock arrives. If the company buys units at a price of and the next units at a price of . So the company will charge on the first units sold and for each unit thereafter regardless of how many units are reordered. Last In First Out This means that the first unit of stock sold is the last unit to enter the companys storage warehouse. This method can benefit the company if the costs of purchasing materials in the previous period are lower than the costs incurred in the current period.
So the unit cost produced with previous stock has a lower cost but has the same price as a production unit with a higher cost. Inventory Management Objectives Storing stock of goods in a warehouse has risks that can reduce the value of existing stock and can cause losses. Apart from requiring storage costs things such as damage or loss of goods as well as spoilage in stock can and are very common. These are the things that companies want to avoid because increasing costs means reducing the profit margin obtained by the company. In management the optimal thing in inventory logistics is the right.
The company will try to sell existing stock so as not to experience losses before Job Function Email List new stock arrives. If the company buys units at a price of and the next units at a price of . So the company will charge on the first units sold and for each unit thereafter regardless of how many units are reordered. Last In First Out This means that the first unit of stock sold is the last unit to enter the companys storage warehouse. This method can benefit the company if the costs of purchasing materials in the previous period are lower than the costs incurred in the current period.
So the unit cost produced with previous stock has a lower cost but has the same price as a production unit with a higher cost. Inventory Management Objectives Storing stock of goods in a warehouse has risks that can reduce the value of existing stock and can cause losses. Apart from requiring storage costs things such as damage or loss of goods as well as spoilage in stock can and are very common. These are the things that companies want to avoid because increasing costs means reducing the profit margin obtained by the company. In management the optimal thing in inventory logistics is the right.
