Explain why inventory costs and inventory levels have declined Essay

Explain why memorial costs and inventory takes have declined comparative to GDP over the last twenty years. Is this beneficial to the economy Why or why non - Essay Examplements have reduced, and in some cases eliminated, inventory carrying costs, in-transit inventory carrying cost and order cost, so an overall reduction in inventory cost. According to Coyle et al. (2012), inventory is an asset because in measuring gain domestic product, GDP, the value of goods and services an economy produces would be considered. Thus, a reduction in this asset reduces the feed on assets, ROA which in essence means a reduction in the GDP. As such, as inventory costs and levels have declined over the past twenty years, so has the GDP.No, this is not beneficial to the economy. As notable by Coyle et al. (2012), GDP is a critical factor of the wellbeing of an economy. This is directly dependent on the level of spending in the economy. With the advancements in technology that has cut on inventor y costs and generally on costs in supply chain, the level of spending by logistics organizations, and ultimately on consumers, has ebbd. The resultant decrease in GDP has negatively impacted on the