Calculate total cost of ordering and carrying inventories

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Reference no: EM13929821

Start with the partial model Ch 28 P3 Build a Model.Xls from the textbook's website. The following inventory data have been established for the Adler Corporation: (1). Orders must be placed of 100 Units. (2). Annual Sales are 338,000 Units. (3). The purchase price per unit is $3. (4). Carrying cost is 20% of the purchase price of goods. (5). Cost per order placed is $24 (6). Dividend Safety is 14,000 units; this amount is on hand initially. (7). Two weeks are required for delivery. a. What is EOQ b. How many orders should the firm place each year. c.At what inventory level should a re-order be made. d. Calculate the total cost of ordering and carrying inventories if the order quantity is (1) 4,000 units, (2) 4,800 units, or (3) 3,600 units. What are the total cost if the order quantity is EOQ? (e) what are EOQ and the total costs if (1) Sales increase to 500,000 units? (2) Fixed order cost increase to $30? sales remains at 338,000 Units. (3) Purchase price increase to $4? leave the sales and the fixed cost at their original value Can I please have this solution in an excel spreadsheet?

Reference no: EM13929821

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