Nov 8, 2017 in
Economics
Cost Control Techniques
The customers usually have different tastes and preferences and this makes them demand different goods from one another. There are various ways in which firms cope with huge variability in customer demands. First, the firms may decide to hold their products for some time. This helps the company avert from the variability in the customer demand. The customer may demand a certain type of product at one point and in future prefer another product. Secondly, the firms may decide to differentiate their products so that they remain relevant. The customers are in a position to get what they want and the risk of making loss in the company is minimized.
Relationship between Service and Inventory Levels
The service has a direct relationship with the inventory level in a firm. The service level means that the customers are served in the best capacity. This ensures that the sales of the firm are increased and the inventory levels eventually go down. The service also ensures that there are more warehouses hence the products of the firms are brought closer to the people. This reduces the average travel time and makes it possible for people to access the firm’s products quickly. The inventory levels are therefore reduced significantly.
Impacts of Lead Time and Lead Time Variability
The lead time is the time that is required to place an order. The lead time affects the inventory levels significantly. When the lead time is more, it means that the inventory level is high. The customers may take a long time to place an order. This makes the inventory level to remain at a high level. The lead time variability also affects the inventory level. It is not possible to determine the optimal levels of inventory with certainty. This may lead to losses when high levels of inventory have to be maintained. This is because the more the inventories, the higher the cost of maintaining them.
Order Now
Live ChatRelated essays
- Political Economics
- Cons Supply-Side Economics
- Commercial Sales Division
- Employee Compensation
- Economic Affairs
Customer`s comment
10 days ago
Big thanks to your writing team for coming through for me with my last order. I didn’t give them a lot of notice, but they were able to come up with a superb paper for me. This is the kind of service that I love. Sometimes, I get forgetful, and I forget when my paper due dates are. It is so comforting to know that I can be in a rush and contact Essays-Writer.net and that you will deliver a great paper for me, no matter what. The fact that you include an anti-plagiarism report is great, too. I appreciate knowing that my work is totally original. Essays-Writer.net rocks!
Customer
Customer`s comment
24 days ago
Your writers are masters at time management. I turned in an order for four very difficult papers, and they were all written perfectly, even with the short deadline notice. Thanks, Essays-Writer.net!
Customer
Customer`s comment
5 days ago
Your writing company delivers for me every time. I have never been disappointed.
Customer
Customer`s comment
13 days ago
I was happy with the two essays that your writers did for me. Even though the subject matter was quite dense, they managed to come up with high quality work. This has been my experience with Essays-Writer.net, over the long haul. Each and every time I have needed a high quality paper, you have come through with outstanding writing examples for me. I am pleased to recommend your writing service to my friends and colleagues.
Customer
Customer`s comment
8 days ago
The work I received from your writers was much better than expected, especially considering the affordability of your services! This is so impressive! I wasn’t aware, previously, that companies like Essays-Writer.net even existed, but then again, I’m pretty sure you are the only one that is this good. I have heard a lot of bad things about other writing companies, but never a negative word about Essays-Writer.net. You are reputed as being the best, and I, for one, am convinced that this is true.Thank you for the outstanding job you did on my essay and research papers.
Customer
