The aim behind the calculations of EOQ and ROL is to weigh up these and other advantages and disadvantages and to find a suitable compromise level. The basis of the theoretical calculations of an EOQ and an optimal ROL is that there are advantages and disadvantages of holding inventory (of buying inventory in large or small quantities). discussions of various practical aspects of inventory management – often referred to by students with no practical experience as ‘theory’.Īdvantages and disadvantages of holding inventory.finding an optimal re-order level (optimal ROL) – providing some idea of the level to which inventories can be allowed to fall before placing an order for more.determining an economic order quantity (EOQ) – calculations to assess how many units of a particular inventory item to order at a time.The areas usually tested in these exams are: Inventory control features in the syllabuses of several ACCA exams. An introduction to professional insights.Virtual classroom support for learning partners.Becoming an ACCA Approved Learning Partner.
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