Question: Using Excel QM, solve the following problem. 6-2 6-24 Ken Ramsing has been in the lumber business for a long time. Ken's biggest competitor is
Using Excel QM, solve the following problem. 6-2 6-24 Ken Ramsing has been in the lumber business for a long time. Ken's biggest competitor is Pacific Woods. Through many years of experience, Ken knows that the ordering cost for an order of plywood is $25 and that the carrying cost is 25% of the unit cost. Both Ken and Pacific Woods receive plywood in loads that cost $100 per load. Furthermore, Ken and Pacific Woods use the same supplier of plywood, and Ken was able to find out that Pacific Woods orders in quantities of 4,000 loads at a time. Ken also knows that 4,000 loads is the EOQ for Pacific Woods. What is the annual demand in loads of plywood for Pacific Woods?3 Barbara Bright is the purchasing agent for West Valve Company. West Valve sells industrial valves and fluid control devices. One of the most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90, and the inventory carrying cost is estimated to be 10% of the cost of each valve. Barbara has made a study of the costs involved in placing an order for any of the
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