goods, packing and packaging materials, and general supplies. Although the effective
use of financial resources is generally и carded as beyond the responsibility of
production management, many manufacturing firms with large inventories (more
than 50 percent of total assets) usually hold production managers responsible for
Inventories. Successful inventory management, which involves the solution of the
problem of which items to carry in inventory in various locations is critical to a
company's competitive success. Not carrying an Item can result in delays in getting
needed parts or supplies, but carrying every item at every location can tie up huge
amounts of capital and result in an accumulation of obsolete, unusable stock.
Managers generally rely on mathematical models and computer systems developed
by industrial engineers to handle the problems of inventory control.
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