Microsoft Excel 2016 Data Analysis and Business Modeling

Chapter 81. The economic order quantity inventory model

Questions answered in this chapter:

An electronics store sells 10,000 cell phones per year. Each time an order is placed for a supply of cell phones, the store incurs an order cost of $10. The store pays $100 for each cell phone, and the cost of holding a cell phone in inventory for a year is assumed to be $20. When the store orders cell phones, how large an order should it make?

A computer-manufacturing plant produces 10,000 servers per year. The cost to produce each server is $2,000. The ...