INTE Exam Dumps : Supply Management Integration

The EOQ formula considers order costs and carrying costs. With the increase in carrying costs from $4 to $6 in Year 2, the EOQ will decrease, specifically to 32 units, as higher carrying costs lead to lower optimal order quantities. This balances inventory holding costs against order costs. Reference: Economic Order Quantity calculation and inventory management.

With a gross requirement of 100 units and an open order for 55 units, 45 additional units are needed. Given the lot size of 30 units, the exception report would indicate ordering 45 units to meet the requirements.

Investment recovery focuses on recouping value from obsolete or excess inventory. Slow-moving materials often require such actions to minimize losses and free up resources. This practice is part of effective inventory management and resource optimization strategies.