After reading Chapter 18, where Moyer, McGuigan, and Rao (2018) remind us of the importance of efficiently controlling the level of inventory investment. In Sections 18-4 and 18-5 the authors describe the economic order quantity (EOQ) model as a tool that could be used to determine the optimum level of inventory. Write a short following the below format: Introduction: Briefly state the purpose of the essay. Body: Make sure to answer the following in your essay: Describe the benefits and costs associated with holding inventory. Calculate the EOQ in the following scenario: An office supply store sells 7,200 cases of pens a year and purchases a case for $50.00. The cost to place an order is $60.00 and the carrying cost of the pens in the warehouse is 20% of inventory value. Note: Show the calculations in your essay. Conclusion: End the essay with a brief conclusion. Word Count: The essay must be 300 words or more. Citations and References: You may supplement your answer with research from outside sources and include direct or indirect citations and references.
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