Part I should be completed in both Excel and R$.$ Note that it$$s natural to obtain different results

depending on the software. However, the two results obtained in Excel and R are not expected to differ

significantly.

As a consultant, your task is to develop and implement a decision model to help them arrive at the best

decision. As a guide, consider the following:

$1.$ Define the data, uncontrollable inputs, model parameters, and the decision variables that

influence the total inventory cost.

$2.$ Develop mathematical functions that compute the annual ordering cost and annual holding cost

based on average inventory held throughout the year and use them to develop a mathematical

model for the total inventory cost.

$3.$ Implement your model on an Excel spreadsheet. Then in an R script file.

$4.$ Use data tables to find an approximate order quantity that results in the smallest total cost.

$5.$ Plot the Total Cost versus the Order Quantity

$6.$ Use the Excel Solver to verify your result of part $4$ above; that is$,$ find the order quantity which

would yield a minimum total cost.

$7.$ Conduct what$-$if analyses by using two$-$way tables in Excel to study the sensitivity of total cost to

changes in the model parameters.

$8.$ In the word document, explain your results and analyses to the vice president of operations.