Question: Walmart manages its inventory using the Economic Order Quantity (EOQ) model. In April 2041, the following data is provided: Annual Demand: 1,000,000 units Order Cost:

Walmart manages its inventory using the Economic Order Quantity (EOQ) model. In April 2041, the following data is provided:

  • Annual Demand: 1,000,000 units
  • Order Cost: $500 per order
  • Holding Cost per Unit: $2

Requirements:

  • Calculate the EOQ.
  • Determine the total inventory cost.
  • Prepare a report on inventory management efficiency.
  • Recommend strategies to optimize inventory levels.

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