1. Discuss some of the issues that a small pizza restaurant might face in inventory management. Would a pizza restaurant use a fixed-order-quantity or period system for fresh dough (purchased from a bakery on contract)? What would be the advantages and disadvantages of each in this situation?
2. List some products in your personal or family “inventory.” How do you manage them? (For instance, do you constantly run to the store for milk? Do you throw out a lot of milk because of spoilage?) How might the ideas in this chapter change your way of managing these SKUs?
3. Does the EOQ increase or decrease if estimates of setup (order) costs include fixed, semi-variable, and pure variable costs while inventory-holding costs include only pure variable costs? Vice versa? What are the implications? Explain.
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