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Low Nail Company - Week Three: Inventory Analysis Assignment

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Low Nail Company - Week Three: Inventory Analysis Assignment LOW NAIL COMPANY a. 2000 = Annual use in units b. 60 = Cost of placing an order c. 1 = Annual carrying cost per item per year d. 1 = ... Additional carrying cost per item per year for half empty warehouse space Note: Warehouse space rented by Low is on-average only half full. e. 2 = Total annual carrying cost per item per year (including physical inventory and empty warehouse space) f. 346 = kegs per order = EOQ Discussion on Question 1: Question 2: The new EOQ, based on the following information is: Orders per Year Order Size Processing Costs ($) Warehousing Costs ($) Sum of Processing and Warehousing Costs ($) 1 2000 $0.00 $2,000.00 $2,000.00 2 1000 $0.00 $1,000.00 $1,000.00 3 667 $90.00 $666.67 $756.67 4 500 $120.00 $500.00 $620.00 In order to calculate the EOQ, = SQRT((2*B12*B14/(B16)) which comes out to 346 kegs per order Week Three: Inventory Analysis Question 1: Using the EOQ formula and the information contained in the Low Nail Case Study, how many kegs of nails should Low order at one time? Use Excel & EOQ Formulas in solving all problems. Place the required Excel formula in all cells highlighted in yellow to show correct answer. Format cells appropriately. Answer all the questions to the Low Nail Company Case. Questions can be found on page 362 in the custom [Show More]

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