Describe briefly the a-b-c approach to inventory control

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Reference no: EM13922383

1. How would you respond to the criticism that EOQ models tend to provide misleading results because values of D, S, and H are, at best, educated guesses?

2. Explain briefly how a higher carrying cost can result in a decrease in inventory.

3. What is safety stock, and what is its purpose?

4. Under what circumstances would the amount of safety stock held be

a. Large? b. Small? c. Zero?

5. What is meant by the term service level? Generally speaking, how is service level related to the amount of safety stock held?

6. Describe briefly the A-B-C approach to inventory control.

Reference no: EM13922383

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