Inventory planning and control Question:
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Cycle inventory is required as?

Answer:

1. One or more stages in the operation cannot supply all the items it produces simultaneously
2. Compensation for the uncertainties inherent in supply and demand
3. Compensation for differences in the timing of supply and demand
4. Material cannot be transported instantaneously between the point of supply and the point of demand

One or more stages in the operation cannot supply all the items it produces simultaneously

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Buffer inventory is required as?The EOQ formula has been criticized in a number of areas. Which of the following is not an area of common criticism?