1. Describe the Order Cycle.

2. Explain the difference between Fixed Order Quantity and Fixed Order Interval. Give an example of each.

3. Explain why any one of the first three "assumptions" of the Economic Order Quantity might not hold. The assumption list is on page 137 of my text. The answer to this question though is not in the book.

Nothing to answer here but for your benefit you should also be able to explain:

The tradeoff between carrying and stockout costs.

Inventory classifications

Each of the components of inventory carrying costs