Cycle inventories, Business Management

Cycle inventories are held for the reason that purchases are usually made in lots rather than the exact amount which may be needed at a point of time. Of course if all purchases are made exactly as and when the item is required there would be no cycle inventories. But practically purchases are made in lots the reason being that if purchases are made frequently and in small number then the cost involved in obtaining the items would be very large.

Inventory Decisions: In an inventory control situation there are three basic question to be answered. They are:

a. How much to order ? that is to say what is the optimal quantity of an item that should be ordered whenever an order is placed ?

b. When should the order be placed ?

c. How much safety stock should be kept?

Posted Date: 3/25/2013 6:24:06 AM | Location : United States







Related Discussions:- Cycle inventories, Assignment Help, Ask Question on Cycle inventories, Get Answer, Expert's Help, Cycle inventories Discussions

Write discussion on Cycle inventories
Your posts are moderated
Related Questions
QUESTION Being able to convey a stunning presentation has become increasingly important in the development of a successful managerial career Based on your own experience, d

Question: (a) Henry Mintzberg has put a lot of emphasis on decision making as a very aspect of the managers' job. In this context, Describe the decisional roles as proposed by

Examine this business leader's leadership style and talk about how he or she has adapted to cultural differences and how he or she operates the business effectively in global marke

Plant Layout: Product Oriented Vs. Process Oriented The argument is never going to end and we don't claim either to solve the issue. The simplest explanation to choice of layou

Problem 1. How do you and your organization define system? Mention the systems that require engineering. Defining system Mentioning the systems that require engineerin

Effects  of Accidents The  accidents are  always undesirable.  They result in  loss of life  and property. They  produce evil effects  on workers, families employers and on the

as an enterpreneur ,if given 50000 what business would you do?

Competitive Environment and Strength of a Company Over the years the growth in Glass industry had slowed down and margins are shrinking in high volume markets. The reason attr

Procedure for carrying out location selection and analysis for a new production facility in the United States of America. Chemical plant facility to serve the automotive market of

QUESTION 1 (i) Discuss the benefits and pitfalls of carrying out formal planning in an organisation. Describe the steps that a manager must take in order to design a feasible