1. Michael Traci, the new inventory manager at Magyar Golf Supplies, is considering using the economic order...

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1. Michael Traci, the new inventory manager at Magyar Golf Supplies, is considering using the economic order quantity for controlling inventory. He wants you to apply the EOQ to a sample product, the Super-Z Wedge. The Super-Z Wedge has an average demand of 30 units/period with an ordering cost of $30/order. The cost of carrying a Super-Z Wedge in inventory is $2.00/unit/

period. No safety stock is carried for this item.

Concluding Principles This chapter presents considerable theory on independent demand inventory management.

Despite the material’s technical nature, several management principles emerge:

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