I have 5 problems to solve in Excel. The instructions are : Do not only show fin
I have 5 problems to solve in Excel. The instructions are :
Do not only show final results. You need to show all analysis on Excel spreadsheet, with referencing. The best approach is to follow the problem set up as provided in EOQ Examples( I attached the EOQ example)
The first 3 questions : (a,b,c)
The famous Widget Company sells widgets at the rate of 80,000 units per year. Each widget sells for $100, and it costs 30 percent to carry widgets in inventory for a year. The process of widget production has been automated over the years, and it now costs $1000 to change over the widget production line to other products that are made on the same line.
a. What is the economical lot size for the production of widgets?
b. How many lots will be produced each year?
c. What are the annual cost of carrying widgets and the annual cost of changeover?
Also these two : (a,b)
Show all analysis,using Excel referencing
The Toyota dealer from problem 3 is considering installing either a Q or a P system for inventory control. The standard deviation of demand has been 4 units per month, and the replenishment lead time is two months. A 95 percent service level is desired.
a. If a continuous review system is used, what is the value of Q and R that should be used?
b. If a periodic review system is used, what is the value of P and T that would be applicable?
