My company should use the Economic Order Quantity (EOQ) model because the demand and lead time for our product is known and does not change very often. My company has a lot of inventory and sells it very quickly so regular reviews of inventory levels take up a lot of time and money due to the costs of having to employees for their time to conduct these reviews of inventory levels. The EOQ model ensures that the ordering costs are reduced and that the manufacturer orders enough inventory to meet demand without over-ordering and incurring holding costs (Collier 2023). In case of an unexpected change in demand the EOQ model uses safety stock to prevent stockout. Safety stock is an extra inventory held above the expected demand in case demand or lead time varies from the expected values