1. The elements of the carrying cost of inventory include the following:
- Capital cost
- Inventory service cost
- Inventory risk cost
- Storage space cost.
2. The relationship between the carrying cost of inventory and the inventory levels and capital investment is shown by the Economic Order Quantity (EOQ) Model.
The EOQ model defines that there will be an increased carrying cost of inventory when the inventory order is above the EOQ level, which also results in increased capital investment for the purchase of inventory that is kept in stock for a long period.
Thus, the carrying cost of inventory and the inventory levels and capital investment have a linear relationship. When one element increases, the other two elements will also increase.
3. ABC Inventory stratification helps management to reduce the carrying cost equation since it divides the inventory into many classifications to ensure the matching of inventory levels based on their annual requirements or demand.
<h3>What is inventory?</h3>
Inventory refers to the stock of goods that a company holds at the end of the trading period because it has remained unsold to outside parties.
Inventory is one of the current assets used in determining the current ratio.
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<span>The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE).
The ARO is provided as 1% chance that a fire will occur per year. The SLE is provided as $2 million in damages. Thus the formula to calculate the ALE is:
ALE = 0.01 X $2,000000. The annualized loss expectancy is $20,000.</span>
When Chevy drew inspiration from Tesla to develop its electric vehicle, the Bolt, it was an example of using competitive product ideas for new product-ideas.
- Competitive items are those that your target market may prefer to yours over. How close a competing product's features and solutions are to your own can help you spot it. Competitive goods may consist of: things that are tangible, like clothing and toys.
- A product idea is a design or strategy for a brand-new good that a business can create and sell in a specific market. It describes the item's function, features, and certain important design components. A manufacturer will employ the final design to construct the product, therefore many product concepts will include mechanical or engineering components.
- A competitive strategy is a long-term marketing plan created by businesses to protect their position in the market and obtain a competitive edge.
Thus this is the answer.
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Maria involved with tragedy of the commons phenomenon.
The required details for tragedy of the commons in given paragraph
In economics, the tragedy of the commons is a scenario wherein man or woman users, who've open get right of entry to to a useful resource unhampered with the aid of using shared social systems or formal guidelines that govern get right of entry to and use, act independently in step with their personal self-interest and, opposite to the not precise of all users, reason depletion of the useful resource via their uncoordinated action. The idea originated in an essay written in 1833 with the aid of using the British economist William Forster Lloyd, who used a hypothetical instance of the results of unregulated grazing on not land in Great Britain and Ireland. The idea have become broadly referred to as the "tragedy of the commons" over a century later after a piece of writing written with the aid of using Garrett Hardin in 1968. Faced with proof of ancient and present commons, Hardin later retracted his authentic thesis, mentioning that the name must have been "The Tragedy of the Unmanaged Commons".
Although taken as a hypothetical instance with the aid of using Lloyd, the ancient death of the commons of Britain and Europe resulted now no longer from misuse of long-held rights of utilization with the aid of using the commoners, however from the commons' owners enclosing and appropriating the land, abrogating the commoners' rights.
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