Models of inventory management
EOQ model of Inventory Management:
EOQ or Economic Order Quantity model helps a manager to determine the quantity of inventory that should be held. The expression for EOQ model is given by:
D = Annual Demand
K = Annual Ordering Costs
h = Inventory Holding Costs
What is “just in time” inventory systems?
Just – in – time is a production strategy which attempts to reduce in-process inventory and associated carrying cost, thus in the process improves the business return on investment. The objective of JIT process is to rely on signals or Kanban between different points in process. These points tell the process the time to make the next part.