Question

( Needs to wait for orders from Man ( advantage or disadvantage
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Answer 1

Answer:

Inventory is an essential part of a manufacturing business. For many businesses, a major source of revenue comes from the sale of merchandise and products. However, holding inventory also represents one of the largest costs incurred in manufacturing. This is because manufacturing facilities must hold raw materials, parts, WIP items, tools, and finished goods which incur additional costs.

Inventory management strategies must be put in place to balance the cost of carrying goods and the level of customer service and satisfaction they wish to achieve. One of the things that manufacturers can do to control their inventory levels is to choose a production method that will be most advantageous for your organization.