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 10
percent and the cost of ordering more inventories will increase by 10 percent. You have
been tasked with assessing the inventory cost and re-order point adjustments in each of
these eventualities...AND to explain your results to management.
b. Increase the lead time by 10% relative to the baseline in E7. What is the impact on the
optimal inventory level, x**? What is the impact of inventory cost? On Re-order points?
c. Increase inventory costs by 10% relative to baseline in H4(and reset lead time to 5 in H7).
What is the impact on the optimal inventory level, x**? What is the impact of inventory cost?
On Re-order 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***
 (Excel) Consider our basic EOQ inventory model. The demand and cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!