Lecture 8 Flashcards
Managing economics of scale and inventory
1
Q
Cycle Inventory
A
To help us achive EoS while meeting the regular demand, by holding an avergae level of SKU from either batch production or batch purchases that are larger than those demanded by the customers
A lot or batch size is the quantity that is either produced or purchased at at time.
2
Q
Inventory holding cost include cost related to
A
Cost of capital
Obsolescene (or spoilage) cost
Hnalding cost
Occupancy cost
Miscellaneous cost
3
Q
Ordering costs include cost related to
A
Buyer time
Transportation costs
Receiving costs
Other costs
