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Find economic order quantity by using Excel simulation. Table-1 = 1000 units/year F= 0.25 c= $400 K= $20 Instructions:

Find economic order quantity by using Excel simulation.
Table-1
λ= 1000 units/year
F= 0.25
c= $400
K= $20
Instructions:
 Step 1 - Create a column for quantity, purchase cost, holding cost and setup (ordering)
cost using the given parameters in Table-1.
 Step 2 - Assign 1 to quantity and calculate purchase cost, holding cost and setup (ordering)
cost
 Step 3 - Increase quantity with an increment of one unit. Calculate purchase cost, holding
cost and setup (ordering) cost.
 Step 4 - Repeat step 3 as much as you need![Hint: Pay attention to your demand level
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8437469.xlsx

Inventory Economic Order Quantity Model
Inventory: Cost vs Quantity Data
Demand rate, D
Setup/order cost, S
Holding cost, H
Unit Price, P 1000
20
25.00% (percentage)
400 Results
Optimal Order...

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