Possibility of Using Hybrid Stock Mechanism for Commission Sales and Manufacturing Companies

In general, the purpose of inventory mechanisms is to create stock ordering rules that can be used to optimize stock levels. Optimal means that when you need it, it is always there, but the cost of keeping it is minimal. Therefore, to determine the economic level, it is necessary to know the costs related to inventory. In addition to the classic and very common inventory mechanisms, mixed or hybrid inventory strategies are also used in several companies’ practices, which combine some elements of two pure systems. In the case of commission sales and manufacturing companies, it is extremely important to minimize or maximize the stocks of raw materials and commission items.