Page 6 - Lesson Note 5
P. 6
Placement of goods and provide facilities to store them. The need for
warehousing arises because there may be difference between the time a
product is produced and the time it is required for consumption. located
and where are these to be delivered.
4. Inventory Control:
A very important decision in respect of inventory is deciding about the level
of inventory. Higher the level of inventory, higher will be the level of service
to customers but the cost of carrying the inventory will also be high because
lot of capital would be tied up in the stock.
