Working Capital Management - Inventory Management

5 important questions on Working Capital Management - Inventory Management

What are carrying costs?

Costs of maintaining current assets, including opportunity cost of capital

What is just-in-time?

System of inventory management that requires minimum inventories of matrials and very frequent deliveries by suppliers

What is the goal for minimizing inventory?

Minimize amout of cash tied up in inventory
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What is the formula for the economic order quantity?

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What is the economic order quantity?

Order size that minimizes total inventory costs

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