To minimize costs that are directly related to inventory in a firms, TOC = O * N, TCC = C * P * A, Required when there is uncertainty between the point of order and delivery time, Quantity of each order made to ensure that the total cost incurred is minimal, Determine when orders should be made, Refers to the time required to obtain supplies from the supplier, Supplier gives a discount to the company if order is made in large quantities, Raw material, work in progress and finished goods, to identify all the costs involved in purchasing and handling of inventory,

DAT 4A INVENTORY CONTROL

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