The Blue Cab Company is the primary taxi company in the city of Maintown. It uses gasoline
Question:
T (a) Use the Solver version of the Excel template for the basic EOQ model to determine the costs that would be incurred annually if the gasoline were to be ordered monthly.
T (b) Use this same spreadsheet to generate a table that shows how these costs would change if the number of months between orders were to be changed to the following values: 1, 2, 3, . . . , 10.
T (c) Use the Solver to find the optimal order quantity.
T (d) Now use the analytical version of the Excel template for the basic EOQ model to find the optimal order quantity. Compare the results (including the various costs) with those obtained in part (c).
(e) Verify your answer for the optimal order quantity obtained in part (d) by applying the EOQ formula by hand.
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Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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