Benefits in Purchasing

Benefits in Purchasing If the purchasing of raw materials and other goods is not tied to production sales, that is, a firm can purchase independently to ensure the most efficient purchase, several advantages would become available. In the first place, a firm can purchase larger quantities than is warranted by usage in production or the sales level. This will enable it to avail of discounts that are available on

Benefits of Holding Inventory

Benefits of Holding Inventory The second element in the optimal inventory decision deals with the benefits associated with holding inventory. The major benefits of holding inventory are the basic functions of inventory. In other words, inventories perform certain basic functions which are of crucial importance in the firm’s production and marketing strategies. Benefits of Holding Inventory The basic functi

Carrying Costs

Carrying Costs The second broad category of costs associated with inventory are the carrying costs. They are involved in maintaining or carrying inventory. The cost of holding inventory may be divided into two categories 1. Those that Arise Due to the Storing Of Inventory The main components of this category of carrying costs are (i) storage cost, that is, tax, depreciation, insurance, maintenance of the buildin

Costs of Holding Inventory

Costs of Holding Inventory One operating objective of inventory management is to minimize cost. Excluding the cost of merchandise, the costs associated with inventory fall into two basic categories: (i) Ordering or Acquisition or Set up costs, and (ii) Carrying costs. These costs are an important element of the optimum level or inventory decisions. Ordering Costs This category of costs is associated with the ac


OBJECTIVES The basic responsibility of the financial manager is to make sun: the firm’s cash flows are managed efficiently. Efficient management of inventory should ultimately result in the maximization of the owner’s wealth, It was indicated in that in order to minimize cash requirements, inventory should be turned over as quickly as avoiding stock outs that might result in dosing down the producti


INVENTORY MANAGEMENT INTRODUCTION The preceding two Chapters have discussed the strategies and considerations in managing two individual current assets, namely, cash and receivables. The third major current asset is inventory. The term refers to the stockpile of the products firm is offering for sale and the components that make lip the product. In other words, inventory is composed of assets that will be sold

USD 100 Million Scheme

USD 100 Million Schema All corporates and institutions are permitted to raise ECB up to USD 100 million equivalent at a  minimum simple maturity of 3 years.  borrowers may utilise the proceeds under this windOw for general corporate objectives, without any end-use restrictions, but excluding investments in stock  markets or in real estate. The loan  mount may be raised in one or more tranches, subject to the