Q. The Economic Order Quantity (EOQ) model is helpful in determining accurate inventory decisions. Examine the major inventory costs that are used in determining the EOQ. Propose an example from your own experience or illustrate what you could imagine where EOQ could be used to improve inventory decisions. In all Examination question responses ensure that you correctly reference sources you used in researching and analyzing your response.

Please comprise at least one numerical example of an EOQ calculation and application. You may supplement with a worksheet or comprise the numerical example within the body of your Examination.