Final answer:
The economic order quantity (EOQ) model assumes constant demand, known costs, and fixed lead time. Production strategies not suitable for EOQ include unpredictable demand and perishable products. Key issues in implementing an inventory control system include demand forecasting and managing stockouts.
Step-by-step explanation:
Assumptions in calculating the economic order quantity:
The economic order quantity (EOQ) model assumes that demand is constant over time, ordering and holding costs are known and constant, the lead time is fixed and constant, and no quantity discounts are available.
Production strategies that should not employ an EOQ approach:
Production strategies that have unpredictable demand, high setup costs, perishable products, or products with limited shelf life are not suitable for the EOQ approach. Additionally, industries that require frequent updates or customized products may not benefit from the EOQ model.
Key issues when implementing and operating an inventory control system:
Some key issues include accurately forecasting demand, managing stockouts and overstock situations, determining reorder points and safety stock levels, and balancing the costs of holding inventory with the costs of stockouts.