Re-order costs are the costs of making orders to purchase a quantity of a material item from a supplier. They include costs such as

Inventory holding costs include:

The following classes of costs are usually involved in inventory decisions except

‘Buffer stock’ is the level of stock

Which of the following is true for Inventory control?

The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700 then relevant incremental cost will be

An example of shrinkage costs includes

If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500 then relevant inventory carrying costs would be