## Description

Complete Case Study -- "Low Nail Company" from our text. Provide a brief discussion of your results for each question.

*- Provide your answers in a well-formatted EXCEL file, using this template -- Low Nail Company.xlsx*

*- Limit the width of the workbook to 1 page using Portrait layout (to allow for printing and grading in Blackboard). Multiple pages "tall" are OK.*

*- Label each question with titles and all answers with proper units (e.g. $, cases per order, $ per year, etc.). *

*- Effective spreadsheet design must be used. For example, all input data must be shown in separate cells and all answers must be formulas that reference the input cells. In this way, any input can be quickly changed for immediate recalculation of your answers! This happens all the time on-the-job.*

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## Explanation & Answer

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Week Three: Inventory Analysis

LOW NAIL COMPANY

Answer all the questions to the Low Nail Company Case. Questions can be found on page 362 in the

custom textbook and page 356 of the original textbook.

Use Excel & EOQ Formulas in solving all problems. Place the required Excel formula in all cells

highlighted in yellow to show correct answer. Format cells appropriately.

Question 1: Using the EOQ formula and the information contained in the Low Nail Case Study, how

many kegs of nails should Low order at one time?

The EOQ formula is:

2000

$

= Annual use in units

60.00 = Cost of placing an order

$

1.00 = Annual carrying cost per item per year

490

= kegs per order (EOQ)

Note: Warehouse space rented by Low is on-average only half full.

Discussion on Question 1:

Warehouse cost is independent of average inventory Low maintains, and charges as equal to max inventory Low

Question 2:

T...