Vendor Invoices Should Be Compared to _______ and _______ to Determine

question 22

Short Answer

Vendor invoices should be compared to _______ and _______ to determine that the vendor is charging the approved price and for quantity received.

---

Definitions:

EOQ Model

Economic Order Quantity model is used in inventory management to determine the optimal order size that minimizes the total cost of inventory, including holding costs and ordering costs.

Total Annual Inventory Costs

The comprehensive sum of all expenses associated with holding and managing inventory over a year, including storage, insurance, and obsolescence costs.

Unit Price

The cost per unit of a product or service, which allows for the comparison of costs across different units and quantities.

Inventory Models

Mathematical models and methodologies used to determine optimal inventory levels that balance holding costs with demand, to minimize overall costs.