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# Find economic order quantity for all units discount by using Excel simulation. Table-3 = 1000 units/year c1= 400 F= 0.25 c2= 200 K= \$20 c3= 100 Q1=...

Find economic order quantity for all units discount by using Excel simulation.
Table-3
λ= 1000 units/year c1= 400
F= 0.25 c2= 200
K= \$20 c3= 100
Q1= 20
Q2= 30
Instructions:
 Step 1 - Create a column for quantity, purchase cost, holding cost and setup (ordering)
cost using the given parameters in Table-3.
 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 using the appropriate parameters in Table-3.
 Step 4 - Repeat step 3 as much as you need![Hint: Pay attention to your demand level]

Let me explain the... View the full answer

Inventory Quantity Discount Model Data
Demand rate, D
Setup cost, S
Holding cost %, I Tot al Cost vs Order Quant it y 1000
20
25.00% (percentage)
Range 1 Minimum quantity
Unit Price, P Range 2
0...

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