Inglés para los

Negocios I

Tema 8: INVENTORY COSTS

Escuela de: Negocios

Logro de aprendizaje N°: 8
Explica verbalmente los costos de
inventario utilizando
esencialmente tiempos “pasado
simple” y “futuro” utilizando la
gramática adecuada.
TEMA 8:
INVENTORY COSTS

SUBTEMAS:
• Carrying costs
• Acquisition costs
Inglés para los Negocios 1

Before you read the passage, talk about these questions. Use the HELP button to compare your
answers.
Minute Electronics Corporation
Memo
To all staff:
Managers have concerns about increased material overhead cost. We
have seen increases in several areas this year.
Carrying cost:
There are increases in storage cost and insurance. We carry materials
longer causing increased inspection cost.
Acquisition cost:
Shipping fees increased this year. As a result, our handling cost are
up as well.
The management team has put together a plan. All unsold
merchandise is available to staff at a reduced cost. Special prices are
acailable this month only.
Goals:
Staff appreciation.
Concerns about depreciation and absolescence.
Shift funds to investments where they can earn interest
Fuente: Evans, V. Dooley, J. y Buchannan, D. (2014). Logistics. Express Publishing
Inglés para los Negocios 1

Vocabulary – Write the word of phrase that is similar in meaning to the underline part.

1. With new products coming out each year, the electronics company was concerned about the process of becoming out-of-date.
(o _ _ o l _ _ c e _ _ e)
2. The company increased the price of the end product to cover the total cost of holding assets, including storage, maintenance,
insurance and other expenses.

(_arr __ ng) (c_s_)

3. The managers determined that a certain amount of loss of value, often due to damage or deterioration during storage was
unavoidable. (d _ _ r e _ _ _ t _ _ n)
4. The company searched for a new storage warehouse, hoping to decrease expenses related to storage, including warehouse,
space, security, and maintenance.
handling cost out of date
( _ t o _ _ g e) ( _ _ s t )

Fuente: Evans, V. Dooley, J. y Buchannan, D. (2014). Logistics. Express Publishing

 Inglés para los Negocios 1

Fill in the blanks with the correct words or phrases from the word bank

interest – handling cost – material overhead cost – inspection cost – acquisiton cost - insurance

1. The expenses involved in sourcing and purchasing materials are included in_________________.
2. The company purchased __________________ to protect its assets.
3. All of the expenses included in purchasing, handling, storing, and transporting materials are calculated as
_______________.
4. Fuel price increases add to the cost of moving materials to calculate the _______________.
5. The ________________ includes expenses incurred inspecting items upon arrival, during, storage, and prior to
shipping.
6. Decreasing material ovehead cost releases cash for investments where companies can earn.

Fuente: Evans, V. Dooley, J. y Buchannan, D. (2014). Logistics. Express Publishing

Inglés para los Negocios 1

Let’s practice – put sentences a-e below into categories 1-4

1. Reporting statements: _____________________

2. Reporting questions: _____________________
3. Reporting requests: _____________________
4. Reporting orders: _____________________

a. I asked the warehouse to check what had happened to it.

b. They told me it had gone two weeks ago.
c. They said they sent it by sea.
d. I asked if they knew where it was.
e. I’m sure I told them to send it by courier when I placed the order.

II. COMPLETE THESE RULES WITH “SAY” or “TELL”

1. We __________ something.
2. We __________ someone something.
3. We __________ something to someone.

Extraído de: https://www.academia.edu/29462480/Business_Result_Intermediate_Student_Book

Ingles para los Negocios 1

Language at work – Read sentences 1-4 and write what was actually said.

1. I asked the warehouse to check what had happened to it.

“Can you ____________________________?”

2. They told me it had gone two weeks ago.
“It __________________________________”.
3. They said they’d sent it by sea.
“We ________________________________”.
4. I asked if they knew where it was.
“Do _________________________________”.

Extraído de: https://www.academia.edu/29462480/Business_Result_Intermediate_Student_Book

Inglés para los Negocios 1

Match the words in the box with the defintions below.

manufacturers, raw materials, retailers, clients, inventory, distributors, warehouses, components suppliers,
streamlined, supply chain.

1. people who sell products to the public: ______________

2. stock: _____________ middleman
3. the place where goods are stored: ________________
4. parts you need to construct something: _______________
5. designed for optimal efficiency: _____________
6. the series of processes and companies involved in making and selling a product: ______________
7. customers: _______________
8. the “middleman” between the manufacturer and retailer: __________ retailer
9. providers of goods: __________
10. producers: ___________
11. the basic substances used to make something: ____________

Extraído de: https://www.academia.edu/29462480/Business_Result_Intermediate_Student_Book

Activity
Inglés para los Negocios 1

Inventory Problems – Group work

In groups analize what are the most common

inventory problems that logistics companies
face and explain how can they solve them.
Thank you!