Your main task is to apply inventory analysis to one stock item of a business company. For this, I request you to visit one company and collect information about the one stock item they supply from outside to apply the EOQ model.

1. Please provide one paragraph of information on the company you visit.

2. Give information on the companys stock item you make analysis. Please also write why you have chosen this item, in other words, why is this item important for the company?

3. List the values of EOQ variables for the stock item. In addition to writing their total numerical value, please explain how these values come out with their subcategories. For example, if the holding cost is 10 dollars per unit per year, you need to explain why and how is it so? In other words, you should explain the sub-cost categories and you should assess whether these costs are high or not with respect to the analysed context and item characteristics. By the way, companies may even be aware of their holding costs and ordering costs. You may need to help them to find the answers to your questions.

4. Apply the EOQ model and show the quantity level you have found and the respective total cost.

5. Compare your EQO value with the companys actual value in reality. Your number and the companys practice will probably not be the same. Please discuss why this difference exists based on the information collected from the company by revealing their rationale and the assumptions of EOQ available in our course slides.