Explain inventory procurement and carrying cost, Operation Management

Assignment Help:

Explain Inventory Procurement Cost and Inventory Carrying Cost.

Inventory Procurement Cost and Inventory Carrying Cost: Inventory is a detailed list of such movable items which are essential to manufacture a product and to keep the equipment and machinery in good working order. Inventory control is related with achieving an optimum balance among two competing objectives: -

To minimize investment in inventory.
To maximize facility levels to the firm's customers and its own operating departments.
A problem that always remains is that how much material may be ordered at a time. It is termed as Economic Order Quantity (EOQ).

Related Discussions:- Explain inventory procurement and carrying cost

Line balancing, Describe What happens if balance doesn’t exist

Describe What happens if balance doesn’t exist

Considering strategic choice - operation strategy, Considering Strategic Ch...

Considering Strategic Choice - Operation Strategy (Strategic analysis will be covered in Strategy - Analysis and Evaluation). The following points are an extract from Port

Find out the nash equilibrium, In a project, executive and boss are working...

In a project, executive and boss are working together. The executive can be sincere or insincere, and the Boss can either reward or penalize. The executive gets no advantage for b

Describe what is the present value, Present and future values for different...

Present and future values for different periods: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500

Different steps needed for proper decision making, Quesrion: Oceania Ho...

Quesrion: Oceania Hospitals has recorded demand for heart transplant surgery over the past few years. The data is given in the following table: a) You have been hired

Explain human capital measurement from insight to action, In article "Human...

In article "Human Capital Measurement: From Insight to Action," authors Whitaker and Wilson Is human capital performance effectively measured through in relationship between Sta

Explain what are competencies, What are "competencies?" Explain, and provid...

What are "competencies?" Explain, and provide two or three examples.

Explain what factors make up strategic process, Discuss the following quest...

Discuss the following questions in relation to strategic management: • What factors make up this process? • How important is it to change, and what criteria determine the cha

Explain some of the near-term and long-term results, As the industry watche...

As the industry watches to see how United Airlines' strategy performs against American Airlines' strategy, management at United Airlines is anxiously monitoring market signs to det

Describe the rational you used for determining the factors, Select an indus...

Select an industry. Using the Porter's Five Forces of Competition, illustrate the forces to the industry you selected. Explain the rational you used for determining the necessary f

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages