Learning Activity 5.3: Inventory Methods Paper
Introduction and Purpose of Assignment
Companies maintain a close watch on inventory because of its effects on cash flow, customer satisfaction, production flow, and many others. This assignment provides insights to two methods used to maintain efficient and cost effective means by which to positively affect the aforementioned areas of concern.
Objectives
- Compare and contrast lean and economic order quantities (EOQ) to determine inventory levels. (5.3)
Theory and Context
Lean concepts and economic order quantity (EOQ) may, at times, be in conflict with each other. Each concept is trying to control inventory levels, but the priorities in each approach are different. Knowing when to use lean and when to use EOQ will aid the decision making for managers.
Resources
Economic order quantity. (n.d.). In Investopedia. Retrieved from
http://www.investopedia.com/video/play/economic-order-quantity-eoq/
Instructions
- In a 2-3 page paper, evaluate the positive aspects of EOQ and lean inventory management, based on the strengths of each.
- Compare and contrast where the tools are most advantageous in certain situations.
- Determine if the two can be effectively used together to achieve the goals of efficiency, availability, and cost control.
- Meet expectations provided in the Paper Writing rubric.
- Provide at least three academic references.
- Submit the paper to your facilitator as an attachment in the dropbox titled Wk5 Inventory Methods Paper by the end of the week.
Grading Guide or Rubric: Paper Writing Rubric
