Glossary
Zero Inventories
Tags: Glossary
A method to eliminate any waste due to build up in inventory level.
What are Zero Inventories?
Zero inventories are a type of inventory management system which requires a company to have no physical inventory stored in warehouses or retail stores. This system allows the company to order the stock that is needed for immediate sale, thus eliminating the cost of storing and maintaining inventory.
The advantage of this system is that it allows a company to reduce inventory costs, increase cash flow and provide customers with more accurate information about product availability.
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