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3 Functions of a DBMS The functions performed by a typical DBMS are the following: Data Definition The DBMS provides functions to define the structure of the data in the application. These include defining and modifying the record structure, the type and size of fields and the various constraints/conditions to be satisfied by the data in each field. Data Manipulation Once the data structure is defined, data needs to be inserted, modified or deleted. The functions which perform these operations are also part of the DBMS. These function can handle planned and unplanned data manipulation needs. Planned queries are those which form part of the application. Unplanned queries are ad-hoc queries which are performed on a need basis. Data Security & Integrity The DBMS contains functions which handle the security and integrity of data in the application. These can be easily invoked by the application and hence the application programmer need not code these functions in his/her programs. Data Recovery & Concurrency Recovery of data after a system failure and concurrent access of records by multiple users are also handled by the DBMS. Data Dictionary Maintenance Maintaining the Data Dictionary which contains the data definition of the application is also one of the functions of a DBMS. Performance Optimizing the performance of the queries is one of the important functions of a DBMS. Hence the DBMS has a set of programs forming the Query Optimizer which evaluates the different implementations of a query and chooses the best among them. Thus the DBMS provides an environment that is both convenient and efficient to use when there is a large volume of data and many transactions to be processed.

(i) Unit Cost of Inventory Unit cost of inventory is the price, which is paid to the supplier for procuring one unit of the inventory. For parts manufactured in house, cost of inventory is the direct manufacturing cost. The unit cost of inventory may be independent of quantity of inventory produced. In this case, unit cost of inventory is irrelevant for the inventory models. This is because the decision regarding how much and when to order is independent of the unit cost of inventory.

In some situations, the unit cost of inventory is dependent upon the quantity of inventory. For example, on a bulk purchase, some quantity discount is offered. Quantity discount means that if inventory is purchased in bulk, it is available at a price lower than the normal unit price. In such cases, the cost of inventory affects the decisions regarding when and how much to order. Therefore, in quantity discount model cost of inventory is considered in the inventory models.

(ii) Ordering Cost This is the cost associated with the placement of an order for the acquisition of inventories. The expenses, incurred in the purchase department, are its main constituents. Salary of purchase deptt, postages bills, telephone, stationary and follow-up measure by the purchase department are clubbed together to determine ordering cost. If in case, a company is producing its own inventory rather than taking it from an outside supplier, then the cost of set-up for making one batch of product is termed as set-up cost. Set-up cost is used when inventory is made within the organization. Similarly, in case of buy situation, we use ordering cost.

(iii) Holding Cost or Carrying Cost Holding costs are incurred due to maintaining an inventory level in the organization. It is due to interest on the held-up capital in inventory, insurance cost, rent, salaries of storage staff, obsolescence, deterioration and pilferage/theft of material, depreciation of material handling equipment, etc. Generally, carrying cost is expressed as a percentage of the inventory value.

(iv) Shortages Cost or Stock-out Cost When there is a stock-out situation, the customer demand is not satisfied. In case of raw material/WIP shortages, the production gets disrupted. This causes loss due to emergency purchase. Unsatisfied customer results in loss of goodwill and lost-sale. The lost-sale may be due to two reasons: (1) the customer may postpone or drop the idea to purchase and (2) the customer may go to another producer of similar product/services.