Question
Discuss the techniques of Inventory Control.
Answer :
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Inventory control is a critical component of logistics management that ensures the right quantity of stock is maintained at the right time, minimizing both excess and shortage. Effective inventory control techniques help organizations optimize costs, improve customer service, and enhance overall supply chain efficiency. One of the widely used techniques is the Economic Order Quantity (EOQ) method, which determines the optimal order size that minimizes the total cost of ordering and holding inventory. By calculating EOQ, companies can strike a balance between ordering costs and carrying costs, reducing unnecessary expenditure. Another common technique is the ABC analysis, which classifies inventory into three categories based on their
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