Question: Problem # 2 : Using the data from Problem # 1 Create an Excel Spreadsheet as illustrated below and then calculate the Annual demand in
Problem # : Using the data from Problem # Create an Excel Spreadsheet as illustrated below and then calculate the Annual demand in units, annual demand in dollars, the EOQ Economic Order Quantity in units and the number of orders per year required for each item below when there are changes with the reorder cost per order, Inventory carrying cost and or Purchase cost for an item. Requirements for this Problem:
Create a Spreadsheet like the table below.
Calculate the new values for the Annual unit demand, Annual dollar demand, EOQ, Annual number of orders based on the changes listed for each item below
Calculate the percent change in the EOQ and the annual number of orders compared to the results in Problem
Does the EOQ increase, decrease or stay the same? If so by what percent?
Does the Order frequency the numbers of orders per year increase, decrease or stay the same? If so by what percent?
Item A: If carry cost increase to what is the new EOQ & how many orders will need to be placed each year. Does EOQ & Order frequency increases or decrease compared to the situation in problem # What is the percent of change?
Item B: If carry cost decrease to and ReOrder costorder increases to $ what is the new EOQ & how many orders will need to be placed each year. Does EOQ & Order frequency increases or decrease compared to the situation in problem # What is the percent of change?
Item C: If ReOrder costorder increases to $ what is the new EOQ & how many orders will need to be placed each year. Does EOQ & Order frequency increases or decrease compared to the situation in problem # What is the percent of change?
Item D: If Purchase cost for the item increase to $ and ReOrder costorder decreases to $ what is the new EOQ & how many orders will need to be placed each year. Does EOQ & Order frequency increases or decrease compared to the situation in problem # What is the percent of change?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
