Define Indirect Materials and Give Two Examples of Indirect Materials

question 186

Essay

Define indirect materials and give two examples of indirect materials for a manufacturing company.

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Definitions:

Basic EOQ Model

The Economic Order Quantity model is a tool used in operations management to determine the optimal order size that minimizes the total holding costs and ordering costs.

Reorder Point

The inventory level at which an order should be placed to replenish stock before it reaches a critically low level or runs out.

Types Of Inventory

Types Of Inventory categorize stock into various forms such as raw materials, work-in-progress, and finished goods, each serving different roles in production and sales processes.