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What is the objective of inventory control?
What is the objective of inventory control?
- To minimize carrying cost of inventory (correct)
- To maximize the return on Investment (ROI)
- To maximize the shortage costs
- To maximize the production efficiency and distribution effectiveness
What is the concept of EOQ (Economic Order Quantity) about?
What is the concept of EOQ (Economic Order Quantity) about?
- Minimizing the carrying cost
- Balancing the supply and demand
- Bringing a trade off between the order cost and holding and shortage cost (correct)
- Maximizing the order cost
Which terminology is used in Inventory management to denote the level at which new stock should be ordered?
Which terminology is used in Inventory management to denote the level at which new stock should be ordered?
- Order Cycle
- Re-order quantity
- Stock Replenishment Time
- Re-order level (correct)
What is the function of safety stock in Inventory management?
What is the function of safety stock in Inventory management?
What is the unit order cost behavior in the EOQ model?
What is the unit order cost behavior in the EOQ model?
What is the primary purpose of the concept of EOQ (Economic Order Quantity)?
What is the primary purpose of the concept of EOQ (Economic Order Quantity)?
What is the term used in Inventory management to denote the time between placing an order and receiving the delivery?
What is the term used in Inventory management to denote the time between placing an order and receiving the delivery?
Which function of inventory management focuses on maintaining a buffer stock to mitigate the risk of stockouts?
Which function of inventory management focuses on maintaining a buffer stock to mitigate the risk of stockouts?
What is the primary objective of inventory control?
What is the primary objective of inventory control?
What terminology is used to represent the level at which new stock should be ordered in Inventory management?
What terminology is used to represent the level at which new stock should be ordered in Inventory management?
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