Appalling assumptions
A student of the Toyota Production System and Lean Manufacturing will find this appalling. Unfortunately, these academic statements are commonly used assumptions by those involved in the development and commissioning of your software applications. This traditional approach to EOQ is deeply embedded in your enterprise resource planning (ERP) and Supply Chain Management programs. In the rush of installation, these factors are chosen with expediency in mind rather than the broader business implications. The numbers for set-up and inventory carrying costs in your materials management systems need to be re-examined.