In a 3-5 page paper, please discuss the following:
- Distinguish among cycle, safety, pipeline, and speculative stock.
- Define what is meant by inventory carrying costs, and list its primary components.
- What are ordering costs, and what is the trade-off between inventory carrying costs and ordering costs?
- Distinguish between a fixed order quantity and fixed order interval system. Which one generally requires more safety stock? Why?
- Explain the logic of the EOQ model and the assumptions associated with the model.
Sample Solution
