Quantity and Inventory

Quantity and Inventory

 

In many organizations, the decisions of how much to purchase and when are made more important by the close relationship between purchase quantity and schedule use.  It is necessary to distinguish between how much to buy in an individual purchase or release and what portion of total requirements to buy from an individual supplier.  Three key questions to answer are : (1) How much to acquire? (2) When to acquire? (3) How to inventory effectively?