Initializing A Cash Discount & EOQ Analysis

EOQ Analysis

Process the attached documents. All required instructuions and data can be found in the two attachments.

NOTE: The EOQ xlsx shows a formula error. This spreadsheet was prepared by you for a previous EOQ assignment; however, when modifying the spreadsheet to input data for a comparable assignment, the error message appeared. Using the EOQ attached assignment, you may correct the formula error and input data for the attached EOQ assignment which shows the correct answers.

Tiger Corporation Formula: EOQ= Sqrt [[2*S* O]/C]] S= Usage in units per period O= Order cost per order C= carrying cost per unit per period a Determining EOQ S( usage in units per period) O( Order cost per order) C=( Carrying cost per unit per period) 25.7%0f $2.26 EOQ= Sqrt [[2*1150000*28)/0.54]] 1 if there are no changes in the costs, the EoQ is 2 If the fixed cost per order is $0, the EOQ S( usage in units per period) O( Order cost per order) C=( Carrying cost per unit per period) 25.7%0f $2.26 EOQ= Sqrt [[2*1150000*0)/0.54]] 3 If the annual carrying cost of the item is $0, the EOQ is S( usage in units per period) O( Order cost per order) C=( Carrying cost per unit per period) 25.7%0f $2.26 EOQ= Sqrt [[2*1150000*0)/0.54]]. EOQ is Infinite, the firm is shown to order as much as possible b. The EOQ is not useful when ordering costs are zero. As shown in part a, when the fixed cost perorder is zero the model is unrealistic, With zero ordering costs the firm is shown to never place an order $ $ 1150000 28.00 0.58 10530 10530 $ $ 1150000 0.58 0 $ $ 1150000 28.00 #DIV/0! INF (1) True