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Carrying Costs

Carrying Costs Carrying costs are also called inventory holding costs. They are the costs that a business incurs for keeping inventory on hand. Carrying costs can include taxes, insurance costs, employee costs, and depreciation. They also include the costs of storing...

Arrow Diagram

Arrow Diagrams (also called activity network diagrams or arrow programming methods) are used to determine optimal sequences of events and interconnections. This chart is sometimes referred to as a PERT (program assessment and review technique) chart. The arrow diagram...

Executive Committee

What is the Executive Committee? A governing body, an executive committee is composed of the key leaders and executives in an organization. It is a central body for decision-making, which oversees the strategic direction of an organization, its policies, and its...

Economic Order Quantity

What is the Economic Order Quantity (Economic Order Quantity)? The economic order quantity (EOQ), also known as the optimal quantity, is the number of units that a company should order to meet its demand and minimize inventory expenses such as holding...

Deming cycle

What is a Deming Cycle? The Deming Cycle (or Plan-Do-Check-Act (PDCA)) is a four-step iterative technique used to solve problems and improve organizational processes. Dr. Walter A. Shewhart, the renowned physicist and statistician from Western Electric and Bell Labs,...