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Selective Inventory Management
The inventory of an industrial firm generally comprises thousands of items with diverse prices, usage and lead time, as well as procurement and/or technical problems. It is neither desirable nor possible to exercise the same degree of control over all those items. The organization must pay more attention and care to those items whose usage value is very high and less attention to those whose usage and utilization value is low. The organization has, therefore, to be selective in its approach to control its investment in various types of stocks and inventories. Such a system is known as `selective inventory control' system.
Types of Costs In short run, costs can be of three general kinds: Fixed Cost: Total fixed costs stay constant as volume differs in the relevant range of production. Fixe
M/s Sunrise Industries estimates its net cash requirement at Rs. 20 million for the subsequent year. Opportunity cost fund is 15 percent per annum of the Companies. The company wil
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