Merchandizing Cont.

Marketing S.S.S 1 Third Term


Merchandizing Cont.

Performance Objectives

Students should be able to explain:

1. Conditions in merchandizing

2. Warehousing cost

3. Cost resulting from a reduction in inventory value

4. Transportation cost etc        


Conditions in Merchandising

Conditions in merchandising include the following:

i. Warehousing cost:

This relates to who bears the cost of keeping the products, i.e. is it the manufacturer or the wholesaler merchant. Both parties must agree so as to avoid unnecessary problems.

ii. Cost resulting  from a reduction in inventory value:

Cost reduction in inventory management is vital in an exploding market that is continuously attracting more competition. As competition increases, logistics businesses must take a few straightforward steps to reduce inventory costs to stay in the game.

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