What is inventory control? Then State and explain the three most common inventory control models?

1. Economic Order Quantity (EOQ) Model:
EOQ = \sqrt{\frac{2DS}{H}}
Where:
- D = Demand rate
- S = Order cost per order
- H = Holding cost per unit per year

The EOQ model determines the optimal order size that minimizes the total cost of inventory, including ordering and holding costs. It is often used to find the most cost-effective quantity of stock that should be ordered to reduce costs.

2. Just-In-Time (JIT) Inventory Model:
JIT is a strategy that focuses on reducing inventory levels by ordering and receiving goods only as they are needed in the production process. This minimizes waste and improves efficiency.

3. ABC Analysis:
ABC analysis categorizes inventory into three categories (A, B, and C) based on their importance:
- A items: High value, low frequency of sales (tight control required)
- B items: Moderate value, moderate frequency of sales
- C items: Low value, high frequency of sales (less control required)

Answer: 1. Economic Order Quantity (EOQ) Model 2. Just-In-Time (JIT) Inventory Model 3. ABC Analysis