EOQ Without Cost- Excel Example
Economic Order Quantity without cost is a method to reduce the expense of "C" inventory. Most organizations split inventory into A, B, or C. A inventory is the most expensive and requires tight control. B inventory is moderately expensive. C inventory is low cost, plentiful, and purchased from the same distributor. We reduce the cost of C inventory by reducing the aggregate rather than individual SKUs. An example of C inventory is the all the spices (salt, pepper, basil, ...) used in a restaurant.
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