Asked by Katelyn Chapman on Jun 21, 2024
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The economic order quantity is influenced by carrying costs, annual requirements and the costs to place an order.
Economic Order Quantity
The optimal quantity of inventory to order that minimizes the total costs associated with ordering and holding inventory.
Carrying Costs
Expenses associated with holding inventory, such as storage, insurance, and opportunity costs, until it is sold or used in production.
Annual Requirements
The total quantity or volume of resources, goods, or services needed by an organization or project over the course of a year.
- Comprehend the fundamentals and advantages of Just-In-Time (JIT) systems within the context of inventory management.
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Learning Objectives
- Comprehend the fundamentals and advantages of Just-In-Time (JIT) systems within the context of inventory management.
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