Logistics
Report on International Logistics
I. Introduction
This report focuses on. the type of inventory decisions that ZK would have to make. the factors the company would take into account when choosing its transport methods. how the company would take into account customer needs when deciding on warehousing facilities.
II. Findings
1. The type of inventory decision that ZK would have to make
Inventory control is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply.
It can also be referred as internal control - an accounting procedure or system designed to promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud and error etc.
Your business's basic stock should provide a reasonable assortment of products and should be big enough to cover the normal sales demands of your business.
Insufficient inventory means lost sales and costly, time-consuming back orders. Running out of raw materials or parts that are crucial to your production process means increased operating costs, too.
The cost of inventory
In business management, holding cost is money spent to keep and maintain a stock of goods in storage.
The most obvious holding costs include rent for the required space; equipment, materials, and labor to operate the space; insurance; security; interest on money invested in the inventory and space, and other direct expenses. Some stored goods become obsolete before they are sold, reducing their contribution to revenue while having no effect on their holding cost. Some goods are damaged by handling, weather, or other mechanisms. Some goods are lost through mishandling, poor record keeping, or theft, a category euphemistically called shrinkage.
ZK company also have the opportunity cost of reduced responsiveness to customers' changing requirements, slowed introduction of improved items, and the inventory's value
I. Introduction
This report focuses on. the type of inventory decisions that ZK would have to make. the factors the company would take into account when choosing its transport methods. how the company would take into account customer needs when deciding on warehousing facilities.
II. Findings
1. The type of inventory decision that ZK would have to make
Inventory control is the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply.
It can also be referred as internal control - an accounting procedure or system designed to promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud and error etc.
Your business's basic stock should provide a reasonable assortment of products and should be big enough to cover the normal sales demands of your business.
Insufficient inventory means lost sales and costly, time-consuming back orders. Running out of raw materials or parts that are crucial to your production process means increased operating costs, too.
The cost of inventory
In business management, holding cost is money spent to keep and maintain a stock of goods in storage.
The most obvious holding costs include rent for the required space; equipment, materials, and labor to operate the space; insurance; security; interest on money invested in the inventory and space, and other direct expenses. Some stored goods become obsolete before they are sold, reducing their contribution to revenue while having no effect on their holding cost. Some goods are damaged by handling, weather, or other mechanisms. Some goods are lost through mishandling, poor record keeping, or theft, a category euphemistically called shrinkage.
ZK company also have the opportunity cost of reduced responsiveness to customers' changing requirements, slowed introduction of improved items, and the inventory's value