Controlling inventory helps with Inventory Carrying Costs (ICC). ICC is the cost a business incurs to hold inventory. The older the inventory, the more it costs (it's like a tax) to sit on the 'shelf.' So the sooner you can sell the inventory, the less it will cost the organization. This is why retail stores have clearance sales, especially for off-season clothing. It costs them more to hold on to it than to reduce the price. How does your organization manage inventory? Or what would you suggest an organization do to minimize ICC?

Answer rating: 100% (QA)

Managing inventory effectively is crucial for minimizing Inventory Carrying Costs ICC and optimizing overall business operations Here are some strategies that organizations can employ to manage invent... View the full answer