Essay about Sandusky Winery Is A Major Winery
Sandusky Winery has had issues with an overstock of product and their inventory was a mess.
This inventory mess was caused by many factors, one of which being producing more product then they were selling. The product sits in storage and loses the company money as they produced the product, but didn’t sell it, so their labor expenses are not paid off by selling it.
Another issue is holding onto promotional products that sit in storage and take up space. The promotional products are good for the moment of the promotion, but months or years later, all it does is take up space. At most, a company should hold promotional products for a week after the event for semimetal value, but after that they should be taken away.
When calculating total inventory cost, Sandusky Winery needs to not only count for the product that is moving, but they need to account for the product that is sitting there and aging.
The cost for storage and maintenance will eventually add up as the more months go by without the product moving, the more the company will have to spend on storage. The company will lose money in labor as again the product will sit in storage and the costs of storage will eventually be more that it cost to…