Reference no: EM133770692

Question 

Hi Megan, Your application of the "Moneyball" strategy to EOQ and ROP is insightful. Just as the Oakland Athletics used data to maximize their team's performance while minimizing costs, businesses can use EOQ to determine the optimal order quantity and ROP to manage inventory efficiently. By analyzing past orders and predicting future needs, businesses can find the most cost-effective products that deliver the best results. Your explanation of the JUST IN TIME (JIT) inventory method is also clear. JIT minimizes excess inventory and reduces the risk of holding outdated products by aligning deliveries closely with actual needs. This approach can indeed streamline inventory management and reduce overall costs. In your example, your calculation of EOQ and ROP is practical. The EOQ of 14.90 helps you optimize order sizes to balance ordering and holding costs, while the ROP of 1000 units ensures you maintain sufficient inventory to meet demand without overstocking. This method helps in maintaining a smooth supply chain and avoiding disruptions. Great job applying these concepts to your business scenario.