Problem:Business Statistics. Please use Excel. Answer questions 3 and 4. The answer for questions 1 and 2 have been provided to answer 3 and 4..
Annual demand 15000 Uncontrollable input
Unit cost $80.00 Parameter
Carrying cost rate 18% Parameter
Order cost $220.00 Parameter
Order quantity 677.0031866 Decision variable
Annual ordering cost = Annual Demand*Order cost/Order quantity
Annual holding cost = Carrying cost rate*Unit cost*Order quantity/2
Total annual cost = Annual ordering cost + annual holding cost
The expert examines business statistics in Excel for annual demand for uncontrollable input.