Question: Problem # 2 : Using the data from Problem # 1 Create an Excel Spreadsheet as illustrated below and then calculate the Annual demand in

Problem # 2: Using the data from Problem #1 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 re-order cost per order, Inventory carrying cost and / or Purchase cost for an item. Requirements for this Problem:
1. Create a Spreadsheet like the table below.
2. 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
3. Calculate the percent change in the EOQ and the annual number of orders compared to the results in Problem 1.
4. Does the EOQ increase, decrease or stay the same? If so by what percent?
5. Does the Order frequency (the numbers of orders per year) increase, decrease or stay the same? If so by what percent?
Item A-001: If carry cost increase to 30% 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-002: If carry cost decrease to 10% and Re-Order cost/order increases to $5.50 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-003: If Re-Order cost/order increases to $6.00 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 #1? What is the percent of change?
Item D-004: If Purchase cost for the item increase to $2100 and Re-Order cost/order decreases to $50 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 #1? What is the percent of change?

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