Discuss whether the EOQ model is still useful if a small error was made while estimating one of the cost parameters used in the EOQ computation.
Explain whether the continuous review or periodic review inventory system is likely to result in higher safety stock. Which is likely to require more time and effort to administer? Why?
Use the inventory turnover ratios in Table 7.2 to comment on which firm is the most efficient in deploying its inventory to generate sales.