Question

Comment controlling inventories are vital in the logistic activity mix

Answer 1

In business, both in trade and in manufacturing, controlling stock or inventories of both raw materials and finished goods is of vital importance. This is because working capital is locked in both and its rotation is of vital importance in determining how efficiently the business is run. Therefore, in any logistic activity mix, controlling inventories is of paramount importance.
Ideally, an organisation should neither be short of inventories nor be overburdened with them.