Inventory may be the most visible sign of supply chain management for end consumers. Few things disappoint consumers more than advertised products that are out of stock when a customer gets to a retail store (or orders online). If the supply chain works well, goods are available when and where people need them. Inventory management is among the most important operations management responsibilities because inventory requires a great deal of capital and affects the delivery of goods to customers. Inventory management affects all business functions including operations, marketing, accounting, information systems and finance. Decisions related to managing inventory can be improved significantly through the use of inventory measures. (Operations Management Contemporary Concepts and Cases Fifth Edition, 2011)

Preparation Work:

1. Review textbook material 11-4 Managing Fixed Quantity Inventory Systems and in particular 11-4a The EOQ Model

2. Review Solved Problem 11.2 and Exhibit 11.9 and read through the entire problem including learning about reorder point which is on the next page

2. Review textbook Problem 6 Example and Solution attached to the assignment post

3. Review CH11 EOQ Model Excel Template (you must have Excel)

Assignment Requirements:

1. Textbook Problem 8 – EOQ, Total Annual Cost, ReOrder Point and fill in the blanks to the following:

Place a new order for _____ cases when the inventory position drops to or is past the reorder point of _____ cases. 

Assignment Submission Acceptable Methods:

1. Use the EOQ Model Excel Template.  Calculate the EOQ, Annual Cost, Reorder Point and Fill in the blanks 

2. If you are not using the EOQ Model Excel Template, you will need to show your complete work including the formula and math for each problem and fill in the blanks as noted above. Number each problem and provide spacing.

Submission Instructions:

1. Click on the Name of the Assignment

2. Click the Write Submission button to type your text or attach a Word document using the Browse My Computer button if you are manually calculating inventory, otherwise submit the EOQ Model Excel Template

3. Failure to follow the submission instructions will result in point deductions.

4. Click the Submit button to submit your assignment

Maximum point value for this assignment is 50 points

I would strongly suggest saving your work

References

(2011). In R. G. Schroeder, S. M. Goldstein, & M. J. Rungtusanatham, Operations Management Contemporary Concepts and Cases Fifth Edition. McGraw-Hill. Retrieved February 2, 2017