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

Explain strategy is a common term in business, Strategy is a common term in...

Strategy is a common term in business. Is it a concept and/or a construct? Explain. Define it as a concept and/or a construct.

Explain is it a strategic weapon or survival tool, Is IT a strategic weapon...

Is IT a strategic weapon or survival tool? Discuss

Graphicalmethod of solvuing LPP, HW TO SOLVE Graphicalmethod of solvuing L...

HW TO SOLVE Graphicalmethod of solvuing LPP

Explain theories of scientific management, • Compare and contrast the theor...

• Compare and contrast the theories of scientific management with that of the human relations management approach. • Determine whether there is one best approach to management,

Explain case studies with ethnographic research, 1. What benefits can be ga...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

Explain the stage in the product life cycle labeled a, The stage in the pro...

The stage in the product life cycle labeled A in the below figure is called introduction. maturity. growth. diversification. decline.

Explain what are some practical limits to economies of scale, What are some...

What are some practical limits to economies of scale?

Explain why is strategic management critical to the success, Why is strateg...

Why is strategic management critical to the success of an organization in meeting its goals and mission?

Explain the optimal quantity and period for this problem, A large supplier ...

A large supplier of electronic components has decided to control the inventory of a certain item by a periodic review, order up to R policy. The mean demand rate for this item is 5

Find the average total setup cost and shortage cost, A manufacturer uses a ...

A manufacturer uses a purchase part who's demand over any time period of length t (in years) can assume to be normally distributed with mean 200t and variance 400t. The part cost $

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages