The short answer would be that it costs time and money, and time in business generally equates to money to so that's a whole heap of money being wasted.
What is Inventory?
An Inventory is basically about keeping a check of how many goods are in stock, what they are, whether they are still necessary or alternatively in the case of perishables, whether they are to be written off as wastage.
Why perform an Inventory if it costs money?
Holding Inventory helps with managerial decisions about stock replenishment, prediction of future trends and what to buy in, while also allowing the potential to cope with unexpected high demands on goods, and combating the possibility of delays in delivery of goods from the supplier.
In addition to this holding inventory maximizes the use of any physical storage space available, keeping hold of popular stock and letting go of unwanted, damaged or out of date goods. This leads to a situation where the businesses inventory will be optimized and may actually save money in the long run.
When should Inventory be held?
The process of inventory is ongoing as business needs alter, new products come on the market and old products become obsolete. There is no specific time on when inventory should be held and it would very much depend on the size and nature of the business itself, which could mean weekly, monthly or annual inventories being conducted.
What is Inventory?
An Inventory is basically about keeping a check of how many goods are in stock, what they are, whether they are still necessary or alternatively in the case of perishables, whether they are to be written off as wastage.
Why perform an Inventory if it costs money?
Holding Inventory helps with managerial decisions about stock replenishment, prediction of future trends and what to buy in, while also allowing the potential to cope with unexpected high demands on goods, and combating the possibility of delays in delivery of goods from the supplier.
In addition to this holding inventory maximizes the use of any physical storage space available, keeping hold of popular stock and letting go of unwanted, damaged or out of date goods. This leads to a situation where the businesses inventory will be optimized and may actually save money in the long run.
When should Inventory be held?
The process of inventory is ongoing as business needs alter, new products come on the market and old products become obsolete. There is no specific time on when inventory should be held and it would very much depend on the size and nature of the business itself, which could mean weekly, monthly or annual inventories being conducted.
