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As a small business owner, the buck stops with you on what price to charge for your products, what inventory levels to carry, how much of a product to order, what products to carry, and a thousand other decisions. If you are manufacturing a product, you have to consider various vendors and take into consideration the quality of the different components they supply. What types of analysis can be done to help with some of these decisions? For example, economic order quantity (EOQ) is one way to determine the optimal quanitty to order for each product in order to minimize ordering and holding costs. Discuss three other types of analysis a small business owner do that can help with decision making on the operations side?
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