Reference no: EM133079226

1. In your knowledge describe what EOQ is (direct quotations for the entirety of the explanation are unacceptable).

- What assumptions are made in calculating the economic order quantity?

- What production strategies should not employ an EOQ approach to ordering and why?

2. What are some key issues when implementing and operating an inventory control system?

3. "Those birds sure go through a lot of food," Clara exclaimed as she saw the shopping list pad that had been pre-printed with the words "bird feed" at the top. She pondered a different approach to shopping for her feathered friends, reviewed her shopping records, and discovered the following. The price of bird feed has held steady at 89 cents per can. Each of the seven birds nibble their way through an average of one can per day, three hundred sixty five days a year. The price of gasoline has held constant at $3.50 per gallon and her pickup uses a gallon each way to the grocery food store. The cost to hold a can of bird feed is 10% of the unit price.