The EOQ model helps managers know how much inventory to order and how often to order. The EOQ model seeks to balance four costs associated with ordering and carrying inventory. The economic order quantity is reached at the lowest point on the total cost curve. That's the point at which ordering costs equal carrying costs. The EOQ formula is shown on p. 748 in the chapter.
Managers accomplish organizational goals by working with other people.
It's important for managers to ensure that employees are performing as they're supposed to. A. Direct supervision is the daily overseeing of employees' work performance and correcting problems as they occur. B. Performance appraisal is the evaluation of an individual's work performance in order to arrive at objective personnel decisions. Performance appraisal methods. There are six major performance appraisal methods.