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Economic Order Quantity Q* Annual Inventory Holding Cost H Annual Ordering Cost O Total Annual Cost TC

Economic Order Quantity Q* Annual Inventory Holding Cost H Annual Ordering Cost O Total Annual Cost TC

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Can someone please help me with the folowing problems on excel with the formulas. Thank you

Q1. Northwest Calculators, Inc. purchases plates used in the manufacture of calculators directly from the supplier. Northwest's calculator production operation, which is operated at a constant rate, will require 9,000 plates_per month throughout the year (HINT: Calculate the annual demand). Assume that the ordering costs are $60 per order, the unit cost is $3 per component, and annual holding costs are 20% of the value of the inventory. Northwest has 300 working days per year and a lead time of 5 days. Fill in the following Optimal inventory policy related blanks (round to two decimal places): Optimal Inventory Policy Answer Economic Order Quantity Q* Annual Inventory Holding Cost H Annual Ordering Cost O Total Annual Cost TC Maximum Inventory Level Q Average Inventory Level Q/2 Reorder Point r Number of Orders Per Year (D/Q*) Cycle Time (Days) T
Transcribed Image Text:Q1. Northwest Calculators, Inc. purchases plates used in the manufacture of calculators directly from the supplier. Northwest's calculator production operation, which is operated at a constant rate, will require 9,000 plates_per month throughout the year (HINT: Calculate the annual demand). Assume that the ordering costs are $60 per order, the unit cost is $3 per component, and annual holding costs are 20% of the value of the inventory. Northwest has 300 working days per year and a lead time of 5 days. Fill in the following Optimal inventory policy related blanks (round to two decimal places): Optimal Inventory Policy Answer Economic Order Quantity Q* Annual Inventory Holding Cost H Annual Ordering Cost O Total Annual Cost TC Maximum Inventory Level Q Average Inventory Level Q/2 Reorder Point r Number of Orders Per Year (D/Q*) Cycle Time (Days) T
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