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

Ask an Expert

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

Write your message here..

Related Questions

Need of quality management systems in an organization, Problem 1: a. ... Problem 1: a. Describe the need of Quality Management Systems in an organization. List any two advantages of Quality Management Systems. b . Explain Quality Assurance and

Implement performance management system in organization, Question 1: (a... Question 1: (a) Describe the process through which you would proceed to implement a Performance Management System in your organization. (b) What are the main problems that y

Explain about the technical skills of a successful manager, Explain about t... Explain about the technical skills of a successful manager. Technical skill: Technical skill considers to the proficiency into handling processes, techniques and methods

ABC liometed, 2. What, in your opinion, could be the reasons for different ... 2. What, in your opinion, could be the reasons for different managerial thoughts in this case?

Strategy, strategy as an organizational process strategy as an organizational process

Explain about the industrial management, Explain about the Industrial Manag... Explain about the Industrial Management. Industrial Management: Industrial Management includes guidance, control and leadership or efforts of a group of individuals towa

Define worker stress, Question 1: a) Define conflict and explain how i... Question 1: a) Define conflict and explain how it can arise in an organization b) Describe the levels at which conflict can occur c) Describe fully two sources of inte

Different types of organisation , Study different business organizations in... Study different business organizations in your business environments    The learner has been given a position of business analyst who will study environments and prepare  report o

Cost context induction, Cost Context Induction : Good maintenance manage... Cost Context Induction : Good maintenance management is important for the company cost control. As companies go in for automation to become more competitive they increasing

Investment management, You are a manager in the investment industry, whose... You are a manager in the investment industry, whose role is to provide investment portfolio advice and managementto a client, who is your investorprincipal. You should identify t