Task/assessment brief: Inventory Management – Continuous Review Systems Introduction This assignment is an individual report of 2400 word +/- 10%. In this assignment, you will explore the concept of “Economic Order Quantity” inventory levels in supply chain management, a critical component of modern business operations. The goal is to perform calculations to determine the optimal ” Economic Order Quantity” inventory levels based on the problem scenario showing step-by-step Excel spreadsheet calculations and providing clear reasoning for your approach. Background (problem scenario) The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs £25 regardless of order quantity, so they usually place a large order (a half year’s supply) at a time. It costs £5 per year to hold a cap and gown in inventory, primarily insurance costs for the highly flammable material. What is the difference in their total cost if they order at their optimal order quantity Q* compared to their current policy? Tasks 1. Provide an introduction to the significance of efficient inventory management to organisations. 2. Analyse the results of your calculations and discuss how these inventory levels impact the company’s total costs, and customer service. 3. Critically discuss the challenges and considerations that organisations face when implementing the EOQ inventory model. Instructions • You should support your work by providing in-text citations • Provide a complete list of references following Harvard style. • Your work should have at least 15 references from journal articles. 70> Excellent / Outstanding Work displaying a comprehensive knowledge and understanding of the subject together with the ability to evaluate critically selected aspects of current knowledge and to suggest original solutions to problems which can be complex. Evidence of wider reading which includes research papers and reviews is shown. Use this reference Slack, N., Brandon-Jones, A and Johnston, R. (2022) Operations Management (chapter 2), 10th edn, Pearson.
