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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.
Logan Products computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it estimated that 39,000 direct labor-hours would
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#questihow do we use emuneration method in interger programing
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