Question

Fruits Proprietary Limited has been selling fruit to local retailers for many years. Recently, global competition in South Africa has expanded drastically, resulting in a lot of fruit imports and increased competition in the fruit industry in which the company operates. The company is in the process of finding a cost management system that will reduce storing costs.

Required:

1. A …………………………….. system can assist Fruit Proprietary Ltd in reducing storing costs by ………………………… the amount of inventory kept at any given time.

Answer 1

Answer to question

A ……economic order quantity….. system can assist Fruit Proprietary Ltd in reducing storing costs by ..keeping tha low level of. the amount of inventory kept at any given time.

For reducing storage cost there are so many theories available but here some of imp. Are as follows.

1. Measures your cost

By measuring your cost it will lead to plan and program development so that storage cost to be cut down

2.Make short-term, medium-term and long-term analyses

By analysing the current situation and future dynamic market it help in creation a vision for org.

3.Automate cost management

Enterprise Resource Planning (ERPs) is a solution that enables enterprise-wide data integration.