1. Do you know when should a physical inventory be taken?

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.

2. Explain can a computer help in forecasting future demand?

Yes, In the market today there are many computer software packages that can compute forecasted demand for goods held in inventory.

3. Do you know what does EOQ stand for?

EOQ stands for Economic Order Quantity.

4. Tell me can forecasting help in controlling inventory?

Yes, through the use of forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.

5. Tell me what is forecasting?

Forecasting is the process of estimating the future demand of a product.

6. Tell me does the model always work?

No, the model only works for those cases that meet its assumptions.

7. What is raw material?

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.

8. Do you know what is a order point?

A order point is a point in time at which a order is placed to replenish goods in inventory.

9. Do you know what is demand?

Demand is the quantity that customers are willing to buy. Demand can be found through forecasting and is needed to find the EOQ level.

10. Tell me what is an order quantity?

An order quantity is the amount of goods that an order requests be shipped to the store.

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