In daily kitchen control, when would you prefer using par stock and min-max over EOQ?

• A. For long-term, fixed-cost purchasing.
• B. For day-to-day control of inventory and reordering thresholds.
• C. For situations with highly variable demand.
• D. Always use EOQ instead.

Answer: (B)

Focusing on day-to-day control, you want a simple, actionable system that keeps stock steady for service while avoiding waste. Par stock and min-max give clear on-hand targets: a minimum that triggers reordering and a maximum that prevents overstock. This makes it easy to respond to actual daily usage and perishables, without complex calculations or assuming perfect predictability.

EOQ is a mathematical model built for steady, long-term purchasing with known costs and constant demand. In a busy kitchen, demand fluctuates, items perish, and lead times can vary, so the rigid assumptions behind EOQ don’t hold well. That’s why par stock and min-max are preferred for everyday inventory control. The other options rely on long-term fixed-cost optimization or assume stable demand, which isn’t the typical kitchen environment.