Answered: Inventory control is one of the central…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Inventory control is one of the central activities of procurement and supply management.

It is extremely important for the success of an organisation due to the large capital investment required.

The aforementioned philosophy around inventory is the key driver to why organisations like

Masodi Organics, which are upcoming and growing rapidly, should place an emphasis on inventory control throughout their operations. Embedding inventory control processes and systems into their daily operations, especially while the organisation is still smaller, will benefit them in the long run.

Write an essay in which you evaluate the ways in which Masodi

Organics can implement inventory control and grow the business effectively and efficiently.

Your discussion should use practical examples relevant to the business of Masodi Organics, and should address the following:

Analyse the relevance of the three (3) inventory costs: (Ordering costs, carrying costs, shortage costs) to the operation of Masodi Organics.
Evaluate the three (3) inventory measures: (average inventory, availability, inventory turnover) that Masodi Organics can implement and defend the application of such measures.

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