Inventory Mangement

The minimum cost of inventory can be attained if the quantity is _____

• less than the Economic Order Quantity

• greater than Economic Order Quantity

• equal to Economic Order Quantity

Why is inventory control important?

• A.

  Inventory is investment

• B.

  Inventory affects services to other department or sections

• Both A nd B

PARETO ANALYSIS CAN MEAN...

• 80% of the EFFECTS comes from 20% of the CAUSES

• An analysis that FOCUSES on the more important or significant items

• 80% of the PROBLEM comes from 20% of the CAUSES of the problem

• ALL OF THESE

What is the EOQ of the following inventory date: Demand = 10,000 units,

Carrying cost per unit = 5.0 OMR/unit, Ordering cost per order = 80 OMR/order

• 466 units

• 566 units

• 366 units

Inventories that mostly affects the operation if not available.

• Non-critical items

• Semi-critical items

• Critical items