| Lesson Plan |
| Grade: |
Date: 03/03/2026 |
| 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.
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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
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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.
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Lesson Structure:
- Do‑now (5') – Students list reasons why businesses keep stock; share ideas.
- Mini‑lecture (10') – Present cost categories and benefit list using slides.
- Guided practice (12') – Walk through the EOQ formula with the ABC Ltd example; students follow on worksheet.
- Independent calculation (10') – New scenario: compute EOQ and total annual cost.
- Ratio analysis activity (8') – In pairs, calculate inventory turnover and DSI from provided data; discuss implications.
- Check for understanding (5') – Quick Kahoot quiz covering costs, benefits, and EOQ concepts.
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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.
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