MANAGEMENT

Detailed explanation-1: -EOQ is a fixed model that takes into account the two primary factors (expenses) which are the ordering costs of the item to be placed at a specific time and the carrying costs of such items in inventories.

Detailed explanation-2: -Fixed Order Quantity happens when only a fixed quantity can be ordered at one time to keep a tight control on inventory. Typically, a minimum number is set in the database and once inventory hits that number, a maximum number of goods is reordered.

Detailed explanation-3: -Fixed Period Ordering System. It is an inventory control method where orders are periodically placed, but the order quantity is different every time, and is also called Fixed Period Deficit Ordering System.

Detailed explanation-4: -Fixed Size Ordering System, Ordering Point System. It is a representative of statistical inventory control method, and is also called Ordering Point System because an order is issued at the time of reaching the Reorder Point.

Detailed explanation-5: -Economic order quantity (EOQ) is the ideal quantity of units a company should purchase to meet demand while minimizing inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has been refined over time.