What are som qualitative considerations to make in relation to cost of stock and opportunity costs?

Qualitative things to consider: - We might not need all the stock we purchase in the beginning of the year! Recall from variance analysis: the budgeted budget rarely matches the actual budget! - If we purchase monthly, issues with delivery might mean we do not produce at full capacity. Goods can also be damaged. It is much easier to negate for this if all goods are delivered in the beginning of the year. Remember to assume that all deliveries will be on time etc. if you choose monthly delivery of goods!