(1) (i) What is an inventory? Explain the salient features of the following inventory models:
Deterministic models Probababilistic models
Models under uncertainty.
(ii) in a deterministic model the ordering cost is Rs. 4500/- order. The cost of each item is Rs. 2500 and carrying cost is 10% per year. If the annual requirement is 10,000 units determine Economic Ordering Quantity (EOQ). If the inventory carrying cost decreases by 10% and ordering cost increases by 10% determine the % change in EOQ. What do you infer?