Concept explainers
a)
To determine: The cost of underestimating the demand.
Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.
b)
To determine: The overage cost per program.
c)
To determine: The number of programs to be ordered per game.
d)
To determine: The stock out risk for the order size.
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