The Value of Inventory Savings
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 May 1992
Abstract
Despite the almost universal belief to the contrary, inventory reduction should not be a major objective for investing in advanced manufacturing technology because the financial benefits from it can be relatively small compared with other benefits. This article describes how changes in inventory are valued and why inventory reductions can have a complex, and often negative, effect on profitability. High inventory levels are only a symptom of other problems; if these problems are not first identified and solved, inventory reductions can be counterproductive.
Keywords
Citation
Primrose, P.L. (1992), "The Value of Inventory Savings", International Journal of Operations & Production Management, Vol. 12 No. 5, pp. 79-92. https://doi.org/10.1108/01443579210011435
Publisher
:MCB UP Ltd
Copyright © 1992, MCB UP Limited