Lesson Plan

• Describe the three main types of inventory (raw materials, work‑in‑progress, finished goods).
• Explain why businesses hold inventory to meet demand, reduce costs, and manage risk.
• Apply the Economic Order Quantity (EOQ) formula to evaluate ordering decisions.
• Analyse how inventory buffers support production scheduling and customer service.
• Evaluate the impact of safety stock on supply‑chain resilience.

• Projector and screen
• PowerPoint slides with diagrams
• Printed handout of inventory types table
• EOQ calculation worksheets and calculators
• Case‑study cards describing inventory challenges
• Sticky notes for group brainstorming

Start with the question, “What happens when a popular product runs out just before a big sale?” Invite a few quick responses to connect to students’ personal experiences. Briefly recap the concept of inventory as stock held by a business. Explain that by the end of the lesson they will be able to identify why businesses keep inventory and how to evaluate ordering decisions.

1. Do‑now (5 minutes): Students write a short answer about a recent stock‑out they witnessed. Collect responses to gauge prior knowledge.
2. Mini‑lecture (10 minutes): Use slides to define raw materials, WIP, and finished goods, then present the three broad reasons for holding inventory (meeting demand, reducing costs, managing risk). Show the suggested flow diagram.
3. Group activity – EOQ calculation (15 minutes): In pairs, students complete a worksheet calculating EOQ for a sample product, then discuss how bulk‑buying discounts affect cost.
4. Case‑study discussion (10 minutes): Teams analyse a scenario where safety stock prevented a supply‑chain disruption and present their key take‑aways.
5. Whole‑class recap (5 minutes): Summarise the main reasons for holding inventory and link back to the learning objectives.

Re‑emphasise the five key reasons businesses maintain inventory and ask students to write one sentence on an exit ticket answering, “Why is inventory important for a business?” Assign homework to research a real company’s inventory strategy and prepare a brief summary for the next lesson.