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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, or 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 you will become familiar with the terminology the EOQ model uses. You will investigate both the EOQ and the alternative order-up-to-level models for inventory management. You will see how to use the EOQ calculator to determine the optimal stocking quantity of a long-lifecycle product in your organization.

Benefits to the Learner

  • Use the EOQ model to match levels of inventory with demand in a way that maximizes profit for long-lifecycle products
  • Explore the order-up-to-level model as an alternative approach to inventory management
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Type
self-paced (non-instructor led)
Dates
Nov 23, 2020 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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