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"On the dealer, with his inventory costs, it's a problem."
Overproduction increases a company's inventory costs because of storage needs.
Further, inventory costs are increased because a company is constantly buying newly designed parts.
At $15,000 a pop, the sail inventory costs add up.
Record stores want to cut their inventory costs and do not like stocking each recording in three formats.
Since 1980, inventory costs as a percentage of economic activity have declined to 14 percent, from 25 percent.
The savings in inventory costs for dealers alone, he predicted, could be more than $3.5 billion a year.
Maintaining aging inventory costs dealers both money and reputation.
Amazon executives said the company had started a major initiative to make sure its fulfillment and inventory costs fall as a percentage of sales.
Inventory levels of service parts can be reduced and therefore reduce total inventory costs.
The fabric let furniture companies slash inventory costs.
And saves manufacturing and inventory costs as well.
This significantly reduces a casino's inventory costs and coin handling costs.
But since it has been able to reduce its inventory costs substantially, its gross margin remained the same as last year, at 25 percent.
These changes will help lower the company's inventory costs, as will a move to insure that high-volume items are never out of stock.
In recent years, Ace has also cut inventory costs for hundreds of stores by moving from weekly to twice-weekly deliveries.
"I'm talking about currency, transportation costs, inventory costs, risk, stockpiles and warehouses."
By leasing the departments, Altman's inventory costs are down by $12 million a year.
In addition, New York State has appropriated $50,000 to pay part of the inventory costs.
By making relatively small batches of parts that are delivered only as needed, inventory costs are kept small.
Just-in-time is a system of timing the purchases of consumables so as to keep inventory costs low.
Geely has also adopted Japanese and Western techniques for controlling inventory costs.
Texaco said it expected the deal to save about $2 billion through cuts in oil inventory costs and in those associated with working capital.
Using that and other data, they can trim or expand their stocks, which will either reduce inventory costs or permit exploitation of sales opportunities.
This will help reduce manufacturing lead time, lower inventory costs through improved forecasting, and reduce safety stock requirements, among other benefits.