What possible business could friend boss be in

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Your friend's boss was having some challenges managing his inventory level including determining the reorder point each month. You told your friend that using the EOQ may be a great idea. The EOQ is an important cash flow tool. The formula can help a company control the amount of cash tied up in the inventory balance. Despite this, your friend communicated that his boss said, "given the nature of our business the EOQ model would be more of a liability than an asset."

Problem 1: What possible business could your friend's boss be in and explain why he would think the model is more of a liability than asset?

Reference no: EM132699090

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