Question

Discuss different application areas of quantitative methods in inventory management. What types of inventory decisions could the managers optimally made with the help of quantitative approach?

Answer 1

Ordering cost reduction.

Holding cost minimization.

Buy new inventory.

Shortage costs.

Step-by-step explanation:

Quantitative analysis is set of data which is observed to identify value. These are numerical in nature . Qualitative analysis identifies the type or specific feature of the data under observation. These are non numerical in nature . The managers can take inventory decisions which are quantitative in nature. The managers focuses on cost cutting initiatives so that profit is maximized.