Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: factors affecting how much inventory businesses hold
Learning Objective/s:
  • Describe the key internal and external factors that influence inventory levels.
  • Explain how demand variability, lead time and batch size affect safety stock and work‑in‑process inventory.
  • Apply the EOQ formula and safety‑stock calculation to determine appropriate order quantities.
  • Evaluate the impact of storage costs, perishability, seasonality and supply‑chain reliability on inventory decisions.
  • Justify management responses such as forecasting, batch‑size reduction, and supplier negotiation to optimise inventory.
Materials Needed:
  • Projector and screen for slide presentation.
  • Printed handout of the factors summary table.
  • Calculator or spreadsheet software for EOQ calculations.
  • Whiteboard and markers.
  • Sample product data sheets for a quick group activity.
 Introduction:
Begin with a quick poll: “What would happen if a store ran out of its best‑selling product?” Connect this to students’ prior experience of stock‑outs in retail. Outline that by the end of the lesson they will be able to identify the main factors that drive inventory levels and use basic calculations to set appropriate stock.
Lesson Structure:
  1. Do‑now (5’) – Students list reasons a business might hold too much or too little stock; share briefly. (Check understanding)
  2. Mini‑lecture (10’) – Present the ten key factors with examples, using slides and the summary table.
  3. Interactive activity (12’) – In groups, calculate EOQ and safety stock for a given product using provided data; record results on worksheet.
  4. Case‑study discussion (8’) – Groups analyse a short scenario where a company faces high storage costs and discuss management responses.
  5. Concept mapping (8’) – Whole class builds a flowchart linking demand forecast, lead time, safety stock, and final inventory level on the board.
  6. Quick quiz (5’) – 3 multiple‑choice questions via Kahoot to check recall of factors and their effects.
Conclusion:
Summarise that inventory decisions balance cost against service level, and that managers must adjust stock based on the identified factors. Ask students to write one exit‑ticket: “Which factor would you prioritize in a start‑up and why?” Assign homework to research a real company’s inventory strategy and prepare a short paragraph.