INVENTORY MANAGEMENT

Approaches The EOQ model em be illustrated by (i) the long analytical approach or trial and error approach, and (ii) the short cut or simple mathematical approach, Trial and Error (Analytical) Approach Given the total requirements of inventory during a given period of...
INVENTORY MANAGEMENT

Safety Stock The economic order quantity and the reorder points as inventory management techniques. have explained to keep the discussion simply, on the assumption of a conditions. That we had assumed (i) constant fixed requirement of inventory and (ii) instantaneous...
INVENTORY MANAGEMENT

Order Point Problem The EOQ technique determines the size of the order to acquire inventory so as to carrying as well as the ordering costs. In other words, the EOQ provides an answer to question, how much inventory should be ordered in one lot? Another important...
INVENTORY MANAGEMENT

Limitations While using the EOQ model, it should be noted that it suffers from oncoming which are mainly due to the restrictive nature of the assumptions on which it is based, the important limitations are explained below. The assumption of a constant consumption...
INVENTORY MANAGEMENT

Approaches The EOQ model em be illustrated by (i) the long analytical approach or trial and error approach, and (ii) the short cut or simple mathematical approach, Trial and Error (Analytical) Approach Given the total requirements of inventory during a given period of...
INVENTORY MANAGEMENT

Order Quantity Problem: Economic Order Quantity (EOQ) Model After various inventory items are classified on the basis of the ABC analysis, the management becomes aware of the type or control that would be appropriate for each of the three categories of the inventory...