Question: ( Excel ) Consider our basic EOQ inventory model. The demand and cost conditions are as indicated in the table below: a . In excel
Excel Consider our basic EOQ inventory model. The demand and cost conditions are as
indicated in the table below:
a In excel file, sheet "Inventory," use the formulas presented in lecture to calculate the
variables.
Given supply chain disruptions, management is concerned that lead times will increase by
percent and the cost of ordering more inventories will increase by percent. You have
been tasked with assessing the inventory cost and reorder point adjustments in each of
these eventualities...AND to explain your results to management.
b Increase the lead time by relative to the baseline in E What is the impact on the
optimal inventory level, What is the impact of inventory cost? On Reorder points?
c Increase inventory costs by relative to baseline in and reset lead time to in
What is the impact on the optimal inventory level, What is the impact of inventory cost?
On Reorder points?
d So if the main concern is inventory costs, what is more of an issue for management? Lead
time or reorder costs? Explain your results. Type here
please fill out excel sheet
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
