Whether the company’s inventory policy is optimal or not and its reason. Introduction: Inventory refers to a stock of unsold goods or products that are holding for sale. Balancing demand and supply is one of the major characteristics of maintaining inventory. Economic order quantity (EOQ) refers to a model or tool designed for reducing the total costs (carrying costs and ordering costs) of the inventory.

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Chapter 17, Problem 13QP

Summary Introduction

To determine: Whether the company’s inventory policy is optimal or not and its reason.

Introduction:

Inventory refers to a stock of unsold goods or products that are holding for sale. Balancing demand and supply is one of the major characteristics of maintaining inventory.

Economic order quantity (EOQ) refers to a model or tool designed for reducing the total costs (carrying costs and ordering costs) of the inventory.

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