How can just-in-time and vendor-managed inventories add value to products for customers?

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04-08-2022
Social Studies

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How can just-in-time and vendor-managed inventories add value to products for customers?

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AnkitM AnkitM · Answer 1 · 2022-08-12T20:04:56+02:00

Just-in-time and vendor-managed inventories add value to products for customers as given below

Both just-in-time and vendor-managed inventory cost the company being served the same amount of money. By employing these techniques, there is less that needs to be stored, which can reduce taxation, sinking, perishable commodities, and other costs. Most of the time, these cost savings are transferred to the consumer in the form of lower prices.

Raw resources and finished items that are both available for sale are both included in inventory. As items are produced or acquired as needed, inventory management enables organizations to reduce inventory expenditures. Inventory is appraised using one of three methods: first-in, first-out, last-in, first-out, or weighted average.

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