Carrying cost of inventory per unit is fixed and known. Consumption, usage and need refer to the need of material for a certain period of time, say per day, week month etc. The economic order quantity is that inventory level that minimizes the total of ordering and carrying cost.
This helps prevent having too much money tied up in inventory that sells slowly, and frees up capital to reinvest in hot-selling items. Print packing lists IM12 for sales orders to aid in inventory picking and order processing.
Loss of managing the store: the maximum quantity of material will be fixed at a lower level in as of store, which deteriorates in quantity if they are stored over a lag period.
References 2 Pepperdine University: 5 Inventory Management Techniques to Implement in Your Business About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since In this sense, customer service measures the effectiveness of the company's inventory management.