Understanding the full costs of inventory is very important for any small business. Keeping these costs down will result in cost savings for their business.
The Costs to Carry Inventory for a Small Business
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From http://getbackontracknow.com 4105 days ago
Made Hot by: OpenSourceMedia on May 1, 2013 11:15 pm
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Comments
4103 days ago
I worked for a company that applied the 80/20 rule throughout the whole organization. Regarding the inventory you could find that 20 percent of the products were generating 80 percent of the revenue. Less than 20 percent of the products were "shelf warmers" and could have much more impact on the binding of capital of what it should have, rejection and return to the vendors of not sellable material with a long overdue due date, etc.
4103 days ago
4103 days ago
I'm curious, could you explain more on how you would apply the Pareto Principle to inventory.