Wholesale Distribution: What are some inventory management myths?

I think that, the most important is profit myths in Wholesale Distribution especially handling Sales, Margins, Inventory, and Expenses. Possibly even most, of what distribution managers know about improving profitability is wrong. Good economic times mask this fact, while challenging times make this fact absolutely dangerous! however managers might need to change the way they think about operation management.

Some mind-set changes are:

• Replacing GMROI as a measurement tool because it almost always leads to incorrect decisions about inventory.

 • Appreciating that bad debts may not always be bad.

 • Understanding that lowering inventory is frequently a bad idea. 

• Accepting that sales growth can be too fast as well as too slow .

• Identifying why most sales force commission plans don't work the way they are supposed to.

Agreed and given good example by Ms. Ghada Eweda. Thanks.

I thank Miss Ghada agreed with them on the answer

Agree with Ghada Eweda <<<<<<<<<<<<<<<<<<<<<

agree with all answer given by exports.....

Thanks for the invite I am leave the answers to relevant experts