Analysis of Economic Order Quantity (EOQ) and Production Order Quantity (POQ) Models for Inventory Management
A solved assignment evaluating EOQ and POQ models for efficient inventory management and cost control.
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Running head: INVENTORY MODELS 1
Inventory Models
EOQ & POQ
Your Name
Course/Number
Date
Instructor Name
Explain the Economic Order Quantity (EOQ) and Production Order Quantity (POQ) models used
by Company A and Company B, respectively.
In your answer, include the following:
1. The basic assumptions of each model as outlined by Stevenson (2009).
2. The calculations and formulas used to determine the optimal order quantity for Company
A and the optimal production batch size for Company B.
3. An explanation of how the given data (e.g., annual demand, ordering cost, holding cost,
and production rate) is applied to each model.
4. A comparison of the EOQ and POQ models in terms of their applicability to different
production and inventory scenarios.
Your response should be at least 500 words and include relevant calculations and explanations.
Inventory Models
EOQ & POQ
Your Name
Course/Number
Date
Instructor Name
Explain the Economic Order Quantity (EOQ) and Production Order Quantity (POQ) models used
by Company A and Company B, respectively.
In your answer, include the following:
1. The basic assumptions of each model as outlined by Stevenson (2009).
2. The calculations and formulas used to determine the optimal order quantity for Company
A and the optimal production batch size for Company B.
3. An explanation of how the given data (e.g., annual demand, ordering cost, holding cost,
and production rate) is applied to each model.
4. A comparison of the EOQ and POQ models in terms of their applicability to different
production and inventory scenarios.
Your response should be at least 500 words and include relevant calculations and explanations.
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Subject
Operations Management