Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Data Analytics to Predict Solutions Your company is concerned that too much working capital is tied up in inventory, but at the same time are concerned stockouts. While many companies reorder inventor

Data Analytics to Predict Solutions

Your company is concerned that too much working capital is tied up in inventory, but at the same time are concerned stockouts. While many companies reorder inventory items based on the number of units they think they will need, a more cost-effective method to determine the optimal order quantity is accomplished by calculating the economic order quantity (EOQ). The costs to be considered are holding costs consisting of storage facility costs and related labor costs; and order costs which consist of shipping and handling costs. One-half of the inventory is on hand at any point in time, and demand is relative even across time. The company’s inventory data and assumed possible order quantities are presented here.

Inventory Cost and Unit Data

Unit Cost

Units

Rate

Annual demand (D)

  2,250 

Order cost per order (S)

$500 

Inventory cost per unit

$250 

Holding cost per unit (H)

$25 

Cost of borrowing rate

10%

Assumed quantities ordered per year

50100150200250300350400450500550600650700750800850

Use the following template:

  • Module 5 CTA Excel File TemplateDownload Module 5 CTA Excel File Template

Requirements

There are four parts to this Assignment. Use Excel to perform the following.

  1. Use the economic order quantity formula (EOQ = SQRT((2SD/H)) to determine the optimal number of units that the company should order based on each assumed level of order quantities provided in the data.
  2. Complete the table by calculating the number of orders per year, annual order cost, annual holding cost, and annual total cost. Highlight the minimum annual total cost using conditional formatting. Hint: The minimum cost should equal the cost at the EOQ you calculated in part 1.
  3. Create a line chart that graphs annual order cost, annual holding cost, and annual total cost. The x-axis should be the quantity ordered. Include a chart legend, appropriate chart title, axes labels, and properly formatted amounts on the axes.
  4. Examine the chart and your responses to parts 1 and 2. Indicate any relationships.

Submit the provided Excel spreadsheet containing your answers to each of the above requirements. Use Excel functions to make any required calculations described in the requirements. Post your completed Excel spreadsheet containing your answers for your instructor to grade. Submit a Word file detailing your answer to Requirement 4. above regarding indicating and explaining any relationships you identify from examining the chart you prepare and your responses to parts 1 and 2.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Review the scenario and watch this week’s videos before you complete the activity below. This scenario can also be found in the “Problems – Series A” section 8-19A of Ch. 8, “Performance Evaluation” o

Review the scenario and watch this week’s videos before you complete the activity below. This scenario can also be found in the “Problems – Series A” section 8-19A of Ch. 8, “Performance Evaluation” of Fundamentals of Managerial Accounting Concepts. Scenario: The Redmond Management Association held its annual public relations luncheon in April Year 2.

Topic: Interpret income tax disclosures in financial statements In this discussion, please reflect on the previous weeks’ topics. Choose a topic you find to be difficult or hard to understand. Researc

Topic: Interpret income tax disclosures in financial statements In this discussion, please reflect on the previous weeks’ topics. Choose a topic you find to be difficult or hard to understand. Research this topic using AI (Copilot or Chatgpt.com, for example) and present your findings. Include a summary of the topic,

In this discussion, please research pension plans and post-retirement benefits for several public corporations. Find one with a defined benefit plan and one with a defined contribution plan. Interpret

In this discussion, please research pension plans and post-retirement benefits for several public corporations. Find one with a defined benefit plan and one with a defined contribution plan. Interpret the notes disclosing the plans, reviewing the notes and explaining the post-retirement benefits that the corporations offer. This discussion supports CO-3 by

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Please complete the following:

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.  Please complete the following: An entrepreneur is someone who has a passion and desire to organize and operate their own business. Using a business plan, an

Company: Samsung In this discussion, research income tax disclosures for a public corporation and access the impact of the tax differences on the income statement. Research this topic using AI (Copil

Company: Samsung In this discussion, research income tax disclosures for a public corporation and access the impact of the tax differences on the income statement.  Research this topic using AI (Copilot or Chatgpt.com, for example) and present your findings. Include a summary of the topic,  and what you learned after

KEONIA- UP TO 12/5/2025- ***** IMPORTANT: PLEASE MAKE SURE THAT ALL WORK IS AUTHENTIC- DO NOT USE AI/ PLAGERISE AS THE ASSIGNMENT WILL BE RUN THROUGH TURN IT IN!!!!!***** ****** THIS ASSIGNMENT HAS 4

KEONIA- UP TO 12/5/2025- ***** IMPORTANT: PLEASE MAKE SURE THAT ALL WORK IS AUTHENTIC- DO NOT USE AI/ PLAGERISE AS THE ASSIGNMENT WILL BE RUN THROUGH TURN IT IN!!!!!*****  ****** THIS ASSIGNMENT HAS 4 PARTS / PLEASE LABEL EACH PART SEPARATELY WITH REFERENCES WHEN COMPLETED****** **** FISCAL ACCOUNTABILITY **** PART

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. For this Discussion Board, ple

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.  For this Discussion Board, please complete the following: A virtual business is any kind of business that is run via the Internet. With no physical location

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Payroll has many different parts.

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Payroll has many different parts. Not only is the employee paying taxes, but the employer is also paying additional payroll taxes. Watch the following

Company: Tesla In this discussion, please reflect on this weeks’ topics of corporate bonds and long-term debt. Choose a public corporation and evaluate the bond disclosure notes included with the fin

Company: Tesla  In this discussion, please reflect on this weeks’ topics of corporate bonds and long-term debt. Choose a public corporation and evaluate the bond disclosure notes included with the financial statements. Research this topic using AI (Copilot or Chatgpt.com, for example) and present your findings. Minimum 250 words  At

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. For this Discussion Board, ple

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.  For this Discussion Board, please complete the following: When multiple employee personalities come into one business unit, there is a possibility of conflict happening.

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Internal controls are an important

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Internal controls are an important part of business operations. Internal controls are used to protect assets. Both companies and individuals use internal controls. Companies

Module 1 – SLPFinancial ReportingAssignment OverviewTraditional and Triple Bottom Line Reporting For managers in all departments, analyzing Traditional and Triple Bottom Line Reporting is important fo

Module 1 – SLPFinancial ReportingAssignment OverviewTraditional and Triple Bottom Line Reporting For managers in all departments, analyzing Traditional and Triple Bottom Line Reporting is important for making informed decisions that balance financial performance with social and environmental responsibility. It helps managers align strategies with sustainability goals, drive innovation, and support

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) repor

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) reporting evaluates financial, social, and environmental impacts, providing a broader view of a company’s sustainability and long-term value creation. In analyzing trends over five years of financial

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Adjusting entries are used to make

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Adjusting entries are used to make sure that all revenue and expenses are recorded in the correct period. Last week you learned about four

Write a 1–2 page executive summary, along with an appendix of supporting information, in which you analyze an organization’s financial performance as well as its level of risk for lending and make and

Write a 1–2 page executive summary, along with an appendix of supporting information, in which you analyze an organization’s financial performance as well as its level of risk for lending and make and present a recommendation to help leadership make a loan decision. Collapse AllIntroduction This portfolio work project will

Listed below are several terms and phrases associated with the accounting concepts. Pair each item from List A with the item from List B that is most appropriately associated with it. 1. Expense recog

Listed below are several terms and phrases associated with the accounting concepts. Pair each item from List A with the item from List B that is most appropriately associated with it. 1. Expense recognition 2. Periodicity 3. Historical cost principle 4. Materiality 5. Revenue recognition 6. Going concern assumption 7.

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) repor

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) reporting evaluates financial, social, and environmental impacts, providing a broader view of a company’s sustainability and long-term value creation. In analyzing trends over five years of financial