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Durable goods

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Durable goods, like household appliances, are heavy, and they need to last a long time. They’re also expensive, so they consume capital when they’re sitting in inventory. Making durable goods takes a long time, however, and customers usually don’t want to wait a long time for them. (If your refrigerator goes out, you want to have a new one delivered right away.) Durable goods can also face tough competition for pricing, and shipping big, heavy items can get expensive. Supply chains for durable goods need to balance the cost of keeping inventory available close to where the customers will want it with the cost of transporting the products and keeping them in inventory.

Supply Chain Management For Dummies

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