Inventory contro

• In inventory control, the term "lead time" refers to the time it takes to receive an order after it has been placed
• Inventory control aims to minimize storage costs while ensuring sufficient stock levels
• What is the primary goal of inventory management?

  Meeting customer demand
• Steps in the order fulfillment process

  1️⃣ Order placement

  2️⃣ Inventory retrieval

  3️⃣ Order packing

  4️⃣ Shipping

  5️⃣ Delivery
• The economic order quantity (EOQ) is a formula used to determine the optimal order size
• What is the reorder point in inventory management?

  When to place an order
• Safety stock is maintained to buffer against unexpected increases in demand
• Match the inventory term with its definition:

  Lead time ↔️ Time to receive order

  EOQ ↔️ Optimal order size

  Safety stock ↔️ Buffer against uncertainty
• The economic order quantity (EOQ) formula includes variables such as demand, ordering costs, and holding costs