Order the cost and demand assignment

Order the cost and demand assignment
Why do some executives believe that inventory is “bad”? Explain why this thinking is
incorrect.
2. Explain the different types of costs related to inventory planning.
3. Explain the trade-offs involved in the economic order quantity. How do these change
when quantity discounts are considered?
4. Why does total system inventory increase as a company increases its number of stocking locations?
5. Early in the chapter it was stated that planning inventory levels is both an art and a
science. Explain in your own words why this is true.
6. A firm is presently using the basic EOQ model and is considering switching to the
production order quantity model (i.e., receiving gradual deliveries over time). If
all the cost and demand parameters stay the same, what changes should the firm
expect?
7. Suppose you have been given the task of reducing inventory in your company, without negatively impacting customer service. What actions might you be able to take to
accomplish this task?
8. What steps do you think companies can take to improve the accuracy of their inventory information systems?
9. Why should one company in a supply chain consider total supply chain inventory as
well as its own inventory levels?
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