Explain different type of cost related to inventory planning

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Reference no: EM131919216

Question: 1. Why do some executives believe that inventory is "bad"? Explain why this thinking is incorrect.

2. Explain the different types of costs related to inventory planning.

3. Explain the trade-offs involved in the economic order quantity. How do these change when quantity discounts are considered?

4. Why does total system inventory increase as a company increases its number of stocking locations?

5. Early in the chapter it was stated that planning inventory levels is both an art and a science. Explain in your own words why this is true.

Reference no: EM131919216

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