A inventory should be taken at least once a year. If items are perishable, seasonal or highly demanded a inventory should be taken more often.
Yes, In the market today there are many computer software packages that can compute forecasted demand for goods held in inventory.
EOQ stands for Economic Order Quantity.
Yes, through the use of forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.
Forecasting is the process of estimating the future demand of a product.
No, the model only works for those cases that meet its assumptions.
Are those basic inputs that are converted into finished product through the manufacturing process. Raw materials inventories are those units which have been purchased and stored for future productions.
A order point is a point in time at which a order is placed to replenish goods in inventory.
Demand is the quantity that customers are willing to buy. Demand can be found through forecasting and is needed to find the EOQ level.