Loading...

Course Description

For products with a longer lifecycle, there's little risk of inventoried items becoming obsolete or useless, so they can be purchased in higher amounts and stored for longer periods. The challenge to inventory management in this case is minimizing the annual cost of acquiring and storing the items. The economic order quantity (EOQ) model helps you find Q*, the order quantity that best minimizes the total annual cost of inventory. In this lesson, you will investigate the assumptions on which the EOQ model is based and become familiar with the terminology the EOQ model uses. You will also investigate both the EOQ and the alternative order-up-to-level models for inventory management, and you will use the EOQ calculator to determine the optimal stocking quantity of a long-lifecycle product in your organization.

Benefits to the Learner

  • Analyze the EOQ model
  • Use the EOQ model to match levels of inventory with demand in a way that maximizes profit for long-lifecycle products
Loading...
Enroll Now - Select a section to enroll in
Type
self-paced (non-instructor led)
Dates
Aug 31, 2021 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
Required fields are indicated by .