When it comes to the mobile phones industry, how can the characteristics of cell phones impact inventory control decisions in a warehouse? What do you...

Before
answering this question, you need to
describe three variables: the mobile phone industry, FIFO,
and
LIFO.

We start by explaining what FIFO and LIFO is. FIFO is an
acronym
for First-In-First-Out. FIFO is an inventory management method
whereby the first batch of goods
bought by the business are sold before the
firm orders another batch. FIFO is preferred by most
businesses because it
prevents the inventory from becoming obsolete.

On the

other hand, LIFO is an acronym for Last-In-First-Out. It is the reverse of FIFO. Here
the
business sells the last batch of inventory that it purchases first. LIFO
is often used to
indicate the rising costs of doing business. The inventory
is assumed to be sold at the most
recent prices, which are usually higher
than the old prices. Since this method can be used by
companies to reduce the
amount of tax that they should pay, it is banned in most countries,
except
the United States, where it has to be used under strict rules and
guidelines.

The mobile phone industry is influenced by the
latest trends. Smartphone makers launch
new models every year, and the
competition is stiff. Some people have to have the latest
smartphone model.
That means that old models become obsolete rather quickly. If you are
thinking
of getting into the business of selling phones, you should consider
the FIFO method of inventory
management. New inventory should always be sold
first because the longer a phone stays in the
warehouse, the more obsolete it
becomes and the less likely you are to sell
it.