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Trends in Agricultural Economics
  Year: 2014 | Volume: 7 | Issue: 1 | Page No.: 11-25
DOI: 10.3923/tae.2014.11.25
 
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Applicable Inventory Control Models for Agricultural Business Managers: Issues and Concerns

M.H. Sani

Abstract:
This study examined inventory control models highlighting the fundamental issues and concerns for shaping agri-business prowess. Inventory control is the centre stage of entrepreneurial existence, survival, growth and sustainability. Inventory was considered a road map that gives direction to a new business for making decisions about management of cash, raw materials, finished goods and receivables. It was revealed that the risks associated with daily business deliveries are high. The production cost control measures are the sole responsibility of business managers. One critical cost of production is investment in raw materials supplies, work-in-process and processed or finished products that are still waiting in the warehouse. If this investment becomes excessive, it will lead to high costs of capital costs, operating costs and decreased production efficiency when two much space is used for inventory. The study concluded that in a customer-oriented inventory, the decision to add an item to stock was usually based on the number of calls for that item. It was recommended that in a producer-oriented inventory, economic issues are vital in deciding whether to stock an item or to produce.
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How to cite this article:

M.H. Sani , 2014. Applicable Inventory Control Models for Agricultural Business Managers: Issues and Concerns. Trends in Agricultural Economics, 7: 11-25.

DOI: 10.3923/tae.2014.11.25

URL: https://scialert.net/abstract/?doi=tae.2014.11.25

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