Inventory management helps make a business more profitable by reducing the cost of goods sold and increasing the sales. It helps increase speed, accuracy, accountability and mobility in all the operations and processes within a business. Both small and large business can benefit from inventory management by boosting efficiency in the supply chain and reducing costs and waste.Know More
Inventory can be defined as the objects or goods that are sold, distributed or used by a company. For example, a business may have 150 boxes of plan papers in an inventory. When one box is used, the quantity reduces by one. Inventory management, therefore, helps determine how the papers were used, the number of boxes remaining and when to place another order. This allows a company or business to keep track on the inventory usage to improve efficiency and make any necessary changes.
The whole process can be made easier by using an inventory management software that allows a business to get a detailed visibility of its inventory. The software must have a tracking system to determine the usage of an inventory. Having a mobile computer allows one to move easily from one point to another while checking the inventory and making updates.Learn more in Managing a Business
Mathematics plays a major role in business management because it helps maximize profit by using techniques such as analyzing production costs, determining ideal pricing, discerning sales patterns and projecting future sales. Having strong skills in mathematics means an individual can analyze all of a company's finances and make changes to save the company money and time, and ultimately make a higher profit.Full Answer >
Business research helps business managers find new markets and make the most of their resources. They are important for start-ups and investors. Established businesses often use it to find new areas for growth.Full Answer >
Henri Fayol's theories regarding business administration were based on what he viewed as the common elements of management: forecasting and planning, organizing, commanding, coordinating and controlling. These common managerial elements, formulated by Fayol while he was head of a French mining company between 1888 and 1918, were also expanded into a set of 14 principles that he believed were necessary for managers to follow to be effective. Fayol's theories of management reflected his belief that efficiency was required at the organizational level, and not only at the level of the task.Full Answer >
An understatement of the inventory balance usually causes an understatement in equity and net income, which makes the company appear less profitable. An understated inventory balance increases a company's cost of goods sold as compared to sales, which reduces net income.Full Answer >