⭐ Important points (exam-critical)
- ⭐EOQ assumes constant demand, instant replenishment, no stock-outs.
- ⭐Carrying cost includes storage + interest on funds blocked + insurance + obsolescence.
- ⭐Material price variance = (SP − AP) × AQ; usage variance = (SQ − AQ) × SP.
- ⭐Bin Card maintained at stores; Stores Ledger by costing department.
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