cost evaluation

What do you think are the most important or most effective management techniques?

What is EOQ calculation?

Can the EOQ formula be affected by external environment? If so what procedures would management implement?

ECONOMIC ORDER QUANTITY

knowing to carry out your inventory in organization help you to know your weak link and which techniques you to solve the problem in your organization

Good technic for inventory management

There are four important techniques of inventory management. These techniques include: - economic order quantity, materials requirement planning, manufacturing resource planning, and just-in-time inventory planning.

Business Management -> Operations management: inventory management techniques Inventory management techniques There are four important techniques of inventory management. These techniques include: - economic order quantity, materials requirement planning, manufacturing resource planning, and just-in-time inventory planning. Economic order quantity Two basic decisions that can help minimise inventory are how much raw material to order and when to order it from suppliers. The economic order quantity, is designed to minimise the sum of both ordering costs and of holding costs. Ordering costs are the costs associated with actually placing the order such as administrative paperwork, delivery, receiving, and inspection. Holding costs are those costs associated with keeping the items on hand such as storage, finance charges, and materials handling costs. The EOQ calculation indicates the order quantity size that will minimise holding and ordering costs based on the organisation's use of inventory. The EOQ formula includes ordering costs, holding costs and annual demand.

EOQ is a gestation of the factotry