1. The supply chain manager at Bob’s Screws and Nuts is trying to determine the best order policy based on his supplier’s pricing. If he orders between 500 and 1000 screws they will cost $3.50. It costs him $75 to process each order. His annual demand is 5,500 screws. He has a 30% inventory carrying cost. Determine his EOQ.
2. Support or contradict this statement: “Given the realities of today’s economy and the rapid changes occurring in business technology, all competitive advantages are short lived. There is no such thing as a sustainable competitive advantage that lasts over the long term.” Defend your position.