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“Wait Just a Minute Professor We Have an Unstable Inventory System!” Experiences and Recommendations for Teaching Reorder Point Analysis with the Basic EOQ Model
David Weltmanr
Neeley School of Business, USA
Edmund Prater
The University of Texas at Arlington, USA
Volume 6: 2012, pp. 91-100; ABSTRACT
Two of the most important and fundamental questions students must learn how to address in inventory management are how much to order and when to order. In continuous review inventory control systems, these questions are commonly addressed by minimizing costs associated with holding inventory and ordering inventory in fixed lot sizes. We have observed instances in popular textbooks where the commonly used formulas cause confusion for students, i.e. the quantity to order calculated is smaller than the reorder point. This note discusses instances of the issue and proposes an enhanced method.
The Americas + Rest of World
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Minimum Order Value
6 copies:
Minimum Order Value
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