Excel template Search (Alt + Q) File Home Insert Draw Page Layout Formulas Data Review View Help Editing Commer Arial v 10 v B Hy 444 Merge $ 8.8 che V Y B : yv 3 fi E F G H K M N Use the area below to draw a line chart for cost functions. #N/A #N/A #N/A #N/A #N/A #N/A #N/A C D 1 Economic Order Quantity Model 2 3 Annual Demand Rate 24,000 Ordering Cost $37.00 5 Unit Cost $13.00 5 Carrying Charge Rate 0.21 7 Formulas 3 Economic Order Quantity (to the nearest whole) Order cost 0 Inventory cost 1 Total cost 2 3 Sensitivity Analysis 4 Order Quantity 2,000 5 5 Order cost 6 Inventory cost 7 Total cost 8 EOQ Benefit 0 EOQ Benelit (%) 1 2 Chart Calculations 3 Order Quantity Order cost Inventory cost Total cast 4 404 5 484 6 565 7 846 8 726 307 0 888 -1 968 2 1,049 3 1,130 4 1.211 5 1.291 1,372 -7 1,453 #N/A #N/A F #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A # #N/A #N/A #N/A / #N/A #N/A #N/A / #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A MIA #N/A / #N/A UNIA #N/A UNA WNIA N/A #N/A #N/A ANIA WNIA NIA #N/A UNIA WALA WAKA Sheet1 + Calculation Mode: Automatic Workbook Statistics Give Fredbank to Micrgolt - 10019 . ---- is the current order quantity. Merkle's cost is $13.00 per case. The company estimates its cost of capital to be 14 percent. Insurance, taxes, breakage, handling, and pilferage are estimated to be approximately 7 percent of item cost. Thus, the annual inventory-holding costs are estimated to be 21 percent of item cost. The cost of placing an order is estimated to be $37.00 per order regardless of the quantity requested in the order. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Questions 1. What is the minimum-cost economic order quantity? Round your answer to the nearest whole number. cases 2. What is the annual ordering cost based on the minimum-cost economic order quantity? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent. $ 3. What is the annual inventory holding cost based on the minimum-cost economic order quantity? Use the rounded EOQ value in your calculations. Round your answer to the nearest cent. $ order quantity? Use the rounded EOQ value your calculations. Round your answer to the 4. What is the total annual cost based on the minimum-cost nearest cent. $ 5. What are the total cost savings in absolute and relative terms caused by using the minimum-cost economic order quantity instead of the current purchasing policy of Q = 2,000? Use the rounded EOQ value in your calculations. Round your answer for the absolute cost savings to the nearest cent and answer for relative cost savings to the nearest whole number. EOQ Benefit: $ EOQ Benefit (%): %