Question: 6. What is inventory? Why should inventory be controlled within acceptable limits? What is the Economic Order Quantity (EOQ)? What is the Economic Production (EPQ)

6. What is inventory? Why should inventory be controlled within acceptable limits? What is the Economic Order Quantity (EOQ)? What is the Economic Production (EPQ) Quantity? Support your answers.

7. What is a stock out? What is lead-time? How can a stock out be prevented? Why is it important to monitor stock levels in a production environment? Give examples.

8. What do the terms holding cost, cost of capital, and ordering cost mean? How do these costs impact inventory management? Support you answers.

9. What is reordering point? How is the reordering point by impacted by lead-time? What is safety stock? Why is stock classified into categories? Provide examples.

10. List the four main types of inventory. What is the probabilistic inventory model? What is a perpetual inventory system? What is cycle counting? Why is inventory accuracy important? Provide examples.

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