Managing inventory is a consistent problem not only for WB but worldwide. While there are various techniques to assist with ordering and storing inventory, one simple method is to use the EOQ.   WB currently has an annual demand of 12,455 for car batteries.  The cost to source and place an order is approximately $75 with storing costs amounting to $2.07 

Required:

1. Calculate the EOQ and total annual inventory costs       
2. Prepare a graphical analysis of the EOQ decision.                 
3. Conduct research on three other methods of inventory management that can aid in preventing supply disruptions.  Report on the advantages and disadvantages of each method, then make a recommendation to WB on the best method to manage inventory levels of batteries.

Answer rating: 100% (QA)

Calculate the Economic Order Quantity EOQ and Total Annual Inventory Costs EOQ Economic Order Quantity is the optimal order quantity that minimizes the total inventory costs considering both ordering ... View the full answer