4.2 Assignment 100 Submitting a text entry box, a website url, a media recording, or a file upload
Short Essay – Economic Order Quantity
Instructions
After reading Chapter 18, where Moyer, McGuigan, and Rao (2018) remind us of the importance of efficiently controlling the level of inventory investment. In Sections 18-4 and 18-5 the authors describe the economic order quantity (EOQ) model as a tool that could be used to determine the optimum level of inventory.
Write a short following the below format:
Introduction:
Briefly state the purpose of the essay.
Body: Make sure to answer the following in your essay:
Describe the benefits and costs associated with holding inventory.
Calculate the EOQ in the following scenario:
An office supply store sells 7,200 cases of pens a year and purchases a case for $50.00. The cost to place an order is $60.00 and the carrying cost of the pens in the warehouse is 20% of inventory value.
Note: Show the calculations in your essay.
Conclusion: End the essay with a brief conclusion.
Word Count: The essay must be 275 words or more.
Citations and References: You may supplement your answer with research from outside sources and include direct or indirect citations and references.
