Describe the kinds of inventory federal express corporation holds. What are the costs associated with each kind of inventory? Compare the types of FedEx’s inventory to that of Starbucks. What are some of the differences? What may account for the differences in types of inventory held among different companies?
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To determine the kinds of inventory that Federal Express Corporation (FedEx) holds, we can refer to their financial statements, specifically the balance sheet. However, as an AI text-based bot, I don't have real-time access to external sources such as financial statements. Therefore, I can provide you with general information about the types of inventory that FedEx and Starbucks may hold, along with some potential differences.
1. FedEx's inventory:
FedEx operates in the logistics and transportation industry, so their inventory primarily consists of three types:
a. Fuel inventory: Since FedEx operates a large fleet of vehicles and aircraft, they need to maintain an inventory of fuel to ensure their vehicles and aircraft have sufficient supply. The costs associated with fuel inventory include procurement costs, transportation costs, storage costs (e.g., tanks), and potential holding costs.
b. Spare parts inventory: FedEx also holds an inventory of spare parts for their vehicles, aircraft, and equipment. This allows them to quickly repair or replace any faulty or worn-out components to maintain their operations. The costs associated with spare parts inventory include procurement costs, storage costs (e.g., warehouses), and potential holding costs.
c. Office supplies inventory: As a large corporation, FedEx also needs to maintain an inventory of office supplies like paper, ink, packaging materials, and other stationery. The costs associated with office supplies inventory include procurement costs, storage costs (e.g., warehouses or distribution centers), and potential holding costs.
2. Starbucks' inventory:
Starbucks operates in the retail and food service industry. Their inventory primarily consists of two main types:
a. Raw materials inventory: This includes coffee beans, tea leaves, milk, sugar, syrups, cups, and other ingredients used in the preparation of beverages and food items. The costs associated with raw materials inventory include procurement costs, transportation costs, storage costs (e.g., warehouses), and potential holding costs.
b. Finished goods inventory: This refers to the ready-to-sell products like packaged coffee, bottled beverages, snacks, merchandise, and other items available for purchase in Starbucks stores. The costs associated with finished goods inventory include production costs, transportation costs, storage costs (e.g., warehouses or distribution centers), and potential holding costs.
Differences between FedEx and Starbucks' inventory:
1. Nature of business: FedEx focuses on logistics and transportation services, whereas Starbucks primarily provides food and beverage retail services.
2. Perishability: Starbucks deals with perishable items like coffee beans and other food ingredients, which may have a shorter shelf life compared to FedEx's spare parts.
3. Inventory turnover: Due to the nature of their operations, FedEx may have a higher inventory turnover rate, particularly for fuel and spare parts, compared to Starbucks.
Factors accounting for the differences in types of inventory held among companies:
1. Industry: Different industries require distinct inventory types based on their business models and operational needs.
2. Just-in-time inventory: Some companies opt for lean inventory practices, like Starbucks, to minimize holding costs and waste.
3. Product lifecycle: Companies with extensive product lines or rapidly evolving products may need a broader range of inventory.
Please note that the specific inventory types and associated costs can vary based on the company's financial reporting practices and individual operating strategies. For accurate and up-to-date information on FedEx and Starbucks' inventory, you should consult their published financial statements or official company sources.