RFID reader does not require direct line of sight to read the information
stored in an RFID tag.
EOQ, also known as the economic order quantity, is the optimal order size in
terms of cost because it minimizes the annual total inventory cost. The EOQ is
the lot size where inventory holding costs equal annual ordering costs.
total annual inventory cost is the sum of the annual purchase cost, the annual
holding cost, the annual capacity cost, and the annual ordering cost.
the instantaneous replenishment assumption of the EOQ model results in the
Economic Manufacturing Quantity model.
optimal order quantity for the quantity discount model may exist at a price
the Economic Manufacturing Quantity model, the annual consumption rate must be
higher than the annual production rate.
demand and lead time are constant, reorder point is the demand during lead
continuous review inventory system is more expensive to monitor compared to the
periodic review inventory system.
(s, S) continuous review inventory system orders the same quantity Q when
physical inventory reaches the reorder points.
periodic inventory review system reviews physical inventory at specific points