Inventory
Deterministic and Probabilistic models in Inventory
The order quantity (how much) and reorder point (when) are determined deterministically by minimizing the total inventory cost that… […]
Inventory carrying cost
Inventory
Just in Time (JIT) Inventory Management
In JIT, a firm keeps only enough inventory on hand to meet immediate production needs. The JIT system reduces inventory carrying… […]
Inventory
Economic Order Quantity (EOQ)
Economic order quantity is the point at which inventory carrying costs are equal to order costs. EOQ is that order quantity or… […]
Inventory
Determination of Safety Stock in Inventory Management
The stock-out can prove costly by affecting the smooth working of the concern. In order to protect against the stock out arising… […]
Inventory
Determination of Stock Levels in Inventory Management
When the quantity of materials reaches a certain figure then fresh order is sent to get materials again. The order is sent before… […]
Inventory
Types of Inventory Costs
There are mainly three types of Inventory costs : (i) Holding cost (ii) Shortage or stock-out cost (iii) Set-up cost … […]
Inventory
How to Develop an Inventory Model
The sequence of basic steps required for developing an inventory model may be organized as follows: Use ABC or VED classification which provides a basis for selective control of inventories through the formulation of suitable inventory… […]