Learning Assignment 9b - Inventory control The purpose of the task is to apply economic order quantity and compare the impact on annual cost of inventory. Task description The success of the workshop is based on an ashtray in public spaces containing patented technology. The product is sold all over the world and sales of the product are fairly steady regardless of the season. The main raw material of the product is a (DN 100mm ) acid-resisting steel tube. - The company uses about 30,000m of steel tube per year, which are delivered to the company in 5 meters long tubes. - Purchase price per one tube (5m) is 320 euros - Ordering cost per order is 400 euros (order, freight, invoice processing, etc.). - Warehousing is estimated to cause various costs of about 15% of the average value of the stock on an annual basis. Task 1: The company currently operates by ordering steel bars evenly every three months, or four times a year. The company keeps a safety stock of 400 bars. Calculate the (average) employed capital in the company's inventories and the cost of warehousing. Task 2: The company decides to halve the safety stock and start applying EOQ. Calculate the economic order size (EOQ) for the product and compare the difference in terms of employed capital to the current situation and warehousing costs. Return your task either as a spreadsheet (i.e. Excel file) calculation or as a PDF-file where you have marked formulas for each column