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One of the basic purposes of inventory analysis in manufacturing and stockkeeping services is to determine how large the orders to vendors should be. please answer

a. true
b. false

User Begum
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Final answer:

The statement is true as inventory analysis in manufacturing and stockkeeping is essential to calculate the ideal order quantity to minimize costs and meet demand.

Step-by-step explanation:

One of the basic purposes of inventory analysis in both manufacturing and stockkeeping services is indeed to determine the optimal size of the orders to vendors. This is true. Inventory analysis involves various inventory management techniques such as Economic Order Quantity (EOQ), Just-In-Time (JIT) inventory, ABC analysis, and others to minimize costs associated with ordering and holding inventory, while also ensuring that stock is sufficient to meet customer demand. Factors such as holding costs, ordering costs, demand rate, and lead time play crucial roles in decision making regarding order size.

User Barthelemy
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