4 Stock Levels Problem 3 ICAI Practical Question 4 B COM CA INTER By Saheb Academy
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Course Description
EOQ in material cost course,
in this course we will learn about the EOQ in material cost, focusing on the Economic Order Quantity (EOQ) model, a vital tool for optimizing inventory management and minimizing costs associated with ordering and holding materials. Participants will explore the principles and calculations behind EOQ, understanding how to determine the optimal order quantity that balances the costs of ordering and storing inventory.
We will delve into the fundamental components of the EOQ formula, including ordering costs, holding costs, and demand rate. Through practical exercises, participants will learn how to apply the EOQ formula to real-world scenarios, ensuring efficient inventory management and cost savings.
The course will cover the assumptions underlying the EOQ model and discuss its applicability in various business environments. We will examine the impact of EOQ on material costs, highlighting how it helps reduce unnecessary inventory expenses and improve cash flow.
Participants will also explore advanced topics such as sensitivity analysis, which assesses how changes in key variables affect the EOQ. Additionally, we will compare EOQ with other inventory management systems like Just-in-Time (JIT) to provide a comprehensive understanding of different approaches.
Real-world case studies will illustrate successful EOQ implementations, showcasing how companies have leveraged this model to achieve cost efficiencies. We will also address common challenges and limitations associated with EOQ and provide strategies to overcome them.
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