Create an interactive excel model that helps you in answering the following questions:

then graph the relation ship between the quantity Q and the total cost and the holding cost and the ordering cost

your graph might looks like the below photo

Note: create and suppose data in the Excel sheet from your own mind, and please show the formulas

1. What happens to the EOQ (Economic order quantity) and the total cost when demand is doubled?
2. What happens to the EOQ and the total cost when unit price is doubled?
3. What is the annual cost of holding inventory at the EOQ and the annual cost of ordering inventory at the EOQ?
4. Comment on the sensitivity of the EOQ model to errors in demand or cost estimates.
5. How much does the total cost increase if the store manager orders twice as many units as the EOQ?
6. How much does the total cost increase if the store manager orders half as many units as the EOQ?
7. What is the EOQ and what is the lowest total cost?
8. What happens to the EOQ if the order cost goes lower?
9. What can you conclude about the relationship between the lowest total cost and the costs of ordering and holding inventory?

Inventory: Cost vs Quantity 4000 3500 3000 2500 Cost (5) 2000 1500 1000 500 0 0 500 100 200 300 400 Order Quantity (Q) Order cost -Holding cost Total cost EO