Flashcards
Inventory management: EOQ, EPQ and inventory costs
Cards in this deck (10)
- 1Inventory definitionA stock or store of goods
- 2Inventory costs:-holding (carrying) costs, cost to carry an item in inventory, -ordering costs, costs of placing an order, -setup cost, time spent preparing equipment for the job adjusting machine, changing tools, shortage costs -costs when demand exceeds supply
- 3Different types of inventory:Raw materials and purchased parts, Partially completed goods (called work in p, WIP), Finished goods, Tools and supplies in maintenance and repairs (MRO inventory), Goods in transit warehouses
- 4How much of their assets does a regular company have in inventory?Half
- 5What is EOQ meant to achieve?the order size that minimizes total inventory control cost
- 6EPQeconomic production quantity
- 7Seasonal inventory:The specific type of inventory that businesses hold in order to meet demand assisted with seasonal patterns
- 8Anticipation inventory:Inventory a company gets in advance of an expected increase in demand
- 9Inventory turnover:a financial metric that measures how efficiently a company manages its inventory
- 10What are the essential elements of inventory management1. Inventory control systems
2. Inventory tracking tools
3. Demand forecasting and lead time information
4. Inventory costs
5. The A-B-C classification
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- Description
- Flashcards on Untitled, created by Maxwell Bougie on 14/10/2023.
- Created by
- Maxwell Bougie · Oct 2023
- Updated
- Oct 15, 2023
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