The most common method to find out how much to order is Economic Order Quantity (EOQ). The economic lot size of an order depends upon two types of costs: i. Inventory carrying costs and ii. Procurement or set up costs. EQO gives the order level where total costs i.e., inventory carrying and procurement costs are minimum. EOQ formula is based [...]
Steps involved in one Complete purchasing cycle are:- 1. Recognition of Need, Receipt and Analysis of Purchase Requisition. 2. Selection of Possible Potential Sources of Supply. 3. Making Request for Quotation. 4. Receipt and Analysis of Quotations. 5. Selection of Right Source of Supply. 6. Issuing the Purchase Order. 7. Follow-Up and Expediting the Order and Others. Step # 1. [...]
After reading this article you will learn about:- 1. Introduction and Definition of Material Handling 2. Functions and Principles of Material Handling 3. Engineering and Economic Factors 4. Relationship with Plant Layout. Introduction and Definition of Material Handling: Starting from the time, the raw material enters the factory gate and goes out of the factory gate in the form of [...]