Management of inventories is a major interest of purchasing managers.In many industries, the investment in inventories comprises a substantial share of the firm's assets. If the productivity of the inventory asset can be enhanced, the improvement will go directly to the bottom line.

Question

Quizplus · Accepted Answer

This statement is true. The effective management of inventory can have a significant impact on a company's financial performance. By improving the productivity of the inventory asset, a company can reduce carrying costs and free up capital for other investments, which can lead to increased profits.

Management of Inventories Is a Major Interest of Purchasing Managers