BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Holding cost same, Holding cost different
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Holding cost similar, Holding cost rare
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Holding cost constant, Holding cost not constant
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Holding cost flexible, Holding cost permanent
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Detailed explanation-1: -Carrying costs, also known as holding costs and inventory carrying costs, are the costs a business pays for holding inventory in stock.
Detailed explanation-2: -Economic order quantity is an inventory management technique that helps make efficient inventory management decisions. It refers to the optimal amount of inventory a company should purchase in order to meet its demand while minimizing its holding and storage costs.
Detailed explanation-3: -Rent for space, security, depreciation costs and insurance are among inventory holding costs. As these costs increase, businesses must consider deploying demand planning and demand sensing.
Detailed explanation-4: -Ordering costs are costs that are incurred to obtain additional inventories, whereas carrying costs are the costs incurred to hold inventory on hand. The total inventory cost is the ordering cost plus the carrying cost.