Your friend's boss was having some challenges managing his inventory level

including determining the reorder point each month. You told your friend that using
the EOQ may be a great idea. The EOQ is an important cash flow tool. The formula
can help a company control the amount of cash tied up in the inventory balance.
Despite this, your friend communicated that his boss said, "given the nature of our
business the EOQ model would be more of a liability than an asset."

What possible business could your friend's boss be in and explain why he would
think the model is more of a liability than asset?

If a business does not have a projected demand or cannot estimate or assess the
demand over time, then the EOQ model will not be helpful.

Any business that sells seasonal products will not benefit from the EOQ model since
to utilize the EOQ model. a business needs to have a constant or projected demand.

Examples of that could be

Businesses that sell seasonal products

Organizations that do not store their products
Stores that do not have a constant or repetitive order pattern
Shops that do have random demand
Businesses that are not "make to stock" where the lead time is less of a sensitive
factor
Since the business is not using one of these functions, the EOQ will not be of much
help, since that is one of the limitations of the model.