Please Provide Spreadsheet And Paper Explaining Spreadsheet

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Please Provide Spreadsheet And Paper Explaining Spreadsheet No Apa Fo Please provide spreadsheet and paper explaining spreadsheet. No APA format required. Just explain. You will need to understand Economic Order Quantity (EOQ). Analyze the following scenario: Meals for the Homeless buys 30,000 large cans of green beans each year. The cost of each can of beans is $4. The cost to place an order for beans, including the time of the employee placing the order, shipping, and so forth, comes to $20 per order. The out-of-pocket carrying costs (for storage, etc.) are $0.30 per can per year. In addition, Meals calculates its interest at 5 percent. How many cans should be ordered at a time? How many orders should there be each year? What are the total ordering costs and carrying costs at the EOQ? Contrast the total of the ordering costs and carrying costs at EOQ to the total ordering and carrying costs if the cans were all ordered at the beginning of the year. You will need to read and understand Appendix 7-A to complete this discussion. Clearly label the calculations of the economic order quantity using Excel (you may attach your Excel worksheet to your discussion post in your online classroom). Use formulas to calculate the EOQ and format the cells to insert a comma if there is more than three numbers. Round to the nearest whole number. Explain the advantages and disadvantages of EOQ in a Word document not to exceed 200 words. You must respond to at least two of your classmates’ postings to receive full credit.

Dr. Jack HW Helper · Accepted Answer

The Economic Order Quantity (EOQ) is a fundamental inventory management tool used by organizations to determine the optimal order size that minimizes total inventory costs. These costs typically include ordering costs—expenses related to placing and receiving orders—and carrying costs—expenses associated with storing and holding inventory. In the scenario of Meals for the Homeless, which annually purchases 30,000 cans of green beans, EOQ helps to optimize ordering to ensure a balance between these two cost categories. Calculation of EOQ: The EOQ formula is: $$ EOQ = \sqrt{\frac{2DS}{H}} $$ where: - D = annual demand (30,000 cans) - S = ordering cost per order ($20) - H = carrying cost per unit annually ($0.30 + 5% interest on the unit cost, i.e., 0.05 * $4 = $0.20, totaling $0.50 per can per year) Plugging in the values: $$ EOQ = \sqrt{\frac{2 \times 30,000 \times 20}{0.50}} $$ $$ EOQ = \sqrt{\frac{1,200,000}{0.50}} $$ $$ EOQ = \sqrt{2,400,000} $$ $$ EOQ \approx 1549 \text{ cans} $$ Rounding to the nearest whole number, the optimal order size is approximately 1,549 cans per order. Number of Orders per Year: $$ \text{Number of orders} = \frac{D}{EOQ} = \frac{30,000}{1,549} \approx 19.36 $$ Thus, about 19 orders should be placed annually. Total Costs at EOQ: - Total Ordering Cost: $$ \text{Order Cost} = \text{Number of orders} \times S = 19 \times 20 = \$380 $$ - Total Carrying Cost: $$ \text{Carrying Cost} = \frac{EOQ}{2} \times H = \frac{1,549}{2} \times 0.50 \approx 774.50 $$ - Total Inventory Cost: $$ \$380 + \$774.50 = \$1,154.50 $$ Comparison to All Orders at Year’s Start: Ordering all 30,000 cans at once would mean: - Ordering cost: $$ \$20 $$ (single order) - Carrying cost: $$ \text{Average inventory} \times H = \frac{30,000}{2} \times 0.50 = \$7,500 $$ This significantly exceeds the EOQ total costs, indicating EOQ’s efficiency in balancing inventory-related expenses. Advantages of EOQ: EOQ reduces both ordering and holding costs, leading to more efficient inv

Please Provide Spreadsheet And Paper Explaining Spreadsheet

Please Provide Spreadsheet And Paper Explaining Spreadsheet No Apa Fo

Paper For Above instruction

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Please Provide Spreadsheet And Paper Explaining Spreadsheet No Apa Fo

Paper For Above instruction

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