Chapter 7 – Economic Order Quantity And Other Replenishment Methods

The topics covered in Chapter 7 include:

  • Recognize the Total Cost of Inventory
  • The Reordering Cost
  • The Carrying Cost
  • The Total Cost of Inventory
  • The Economic Order Quantity Formula
  • Working with The EOQ Formula
  • Limits of The Economic Order Quantity Formula
  • The EOQ and Seasonal Items
  • Planned Excess and The Standard Order Quantity
  • The Importance of Calculating The Reordering and Carrying Costs
  • When to Use EOQ Replenishment
  • Ordering to Minimize Your Total Inventory Investment
  • Maximum Stock Levels and Just In Time (JIT) Replenishment
  • Price Increase Analysis
  • Price Break Purchasing by Item
  • Vendor Managed Inventory