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Define the inventory procurement cost and inventory carrying cost.
Inventory Procurement Cost and Inventory Carrying Cost:
Inventory is a detailed list of such movable items that are essential to manufacture a product and to keep the equipment and machinery into good working order. Procurement costs reduce as the order quantity rises. Carrying costs are mostly directly proportional to the order size or order quantity or lot size.
Q. How do I best control cost? Several people think that they are controlling cost when they approve invoices or sign cheques. In fact the cost is already long since committed
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