Inventory management - how much should be orderd
3 important questions on Inventory management - how much should be orderd
Which two sets of costs are we balancing in the volume decision of inventory?
1) The costs of buying the inventory
2) the costs of holding the inventory
2) the costs of holding the inventory
What three order costs will decrease as order size increases?
1) cost of placing an order
2) price discount costs
3) stock-out costs
2) price discount costs
3) stock-out costs
What four costs will increase as order size increases?
1) working capital costs
2) storage costs
3) obsolescence costs
4) operating inefficiency costs
2) storage costs
3) obsolescence costs
4) operating inefficiency costs
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