Part 4: Inventory Management We've outlined several tools and techniques that have been used in business to improve organizational efficiency and effectiveness. One key component of this strategy is sound inventory management and applying inventory models that help managers make better inventory decisions to reduce waste and costs. 4.A Inventory Management - EOQ Model Items purchased from a vendor cost $20 each, and the forecast for next year's demand is 1,000 units. If it costs $5 every time an order is placed for more units and the storage cost is $4 per unit per year: a. What quantity should be ordered each time? b. What is the total ordering cost for a year? c. What is the total storage cost for a year? d. What is the total inventory cost per year? Briefly describe the likely impact of these calculations on efficiency and effectiveness. Is inventory an asset or a liability? When should it be considered waste