zero inventory

zero inventory definition - business

zero inventory

Maintaining a minimum level of inventory as part of a goal to reduce costs and increase profitability. Although an actual level of zero inventory is unlikely, a strategy to reduce inventory should result in lower expenses associated with warehousing, spoilage, and so forth. The term is sometimes used synonymously with just-in-time inventory.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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