The point of this assignment is to lay the foundation for "how" to solve this type of problem. It is to understand what each variable and input into the formula really means.

I am not concerned with getting the correct answer to the question, but instead, what I would like you and your group to do is this:

• Identify and write out each formula you will need to work out the problem, you will find all the formulas in the textbook, under section 11-4 Managing Fixed Quantity Inventory Systems
• For each formula:
  • further identify every single variable, from every single equation, required to figure out the EOQ and for each of these variables:
    • provide a definition for each variable,
    • make sure you provide the meaning for each variable, give real-life examples
    • if you can, provide a numerical value from the problem example (Problem #6, Pg. 237, or from the solution provided) that fits the variable.