MBAA-102 Accounting for Managers – Unit 9
Objectives: describe various optimization concepts pertaining to inventory; explain the concept of Economic Order Quantity (EOQ) of inventory; discuss various factors affecting inventory; derive the expression for EOQ of simple EOQ model & understand EOQ model for non-uniform demand model.
Materials:
The relevant material is available here.
Questions:
- Distinguish between order cycle and inventory cycle.
- What do you understand by the term Operating Doctrine of inventory? Explain.
- Write short notes on following: (a) Order Cost (b) Carrying cost (c) Re-order period (d) Re-order quantity