Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the costs and benefits of holding inventory
Learning Objective/s:
  • Describe the four main types of inventory holding costs and their calculation methods.
  • Explain the strategic benefits of maintaining inventory and how they support business objectives.
  • Apply the Economic Order Quantity (EOQ) formula to determine optimal order quantities.
  • Analyse key inventory performance ratios and use them to assess stock‑management decisions.
Materials Needed:
  • Projector or interactive whiteboard
  • PowerPoint slides summarising costs, benefits, EOQ and ratios
  • Worksheet with EOQ calculation exercise
  • Calculator or spreadsheet software
  • Printed handout of the decision‑making checklist
  • Sample barcode/stock‑card images for discussion
 Introduction:
Begin with a quick poll: how many students have ever waited for an online order because a store ran out of stock? Review the previous lesson on demand forecasting, then outline today’s success criteria: students will identify inventory costs, articulate benefits, and calculate the EOQ.
Lesson Structure:
  1. Do‑now (5') – Students list reasons why businesses keep stock; share ideas.
  2. Mini‑lecture (10') – Present cost categories and benefit list using slides.
  3. Guided practice (12') – Walk through the EOQ formula with the ABC Ltd example; students follow on worksheet.
  4. Independent calculation (10') – New scenario: compute EOQ and total annual cost.
  5. Ratio analysis activity (8') – In pairs, calculate inventory turnover and DSI from provided data; discuss implications.
  6. Check for understanding (5') – Quick Kahoot quiz covering costs, benefits, and EOQ concepts.
Conclusion:
Summarise how balancing holding costs against benefits leads to optimal order decisions, and remind students to complete the checklist as homework. Exit ticket: write one real‑world factor that could shift the EOQ calculation. Assign a brief reflection on how inventory ratios could inform future purchasing decisions.