# MGT608 American International College Week 3 Low Nail Company Case Brief

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Mathematics

MGT608

American International College

## 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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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: = Annual use in units = Cost of placing an order = Annual carrying cost per item per year = kegs per order (EOQ) Note: Warehouse space rented by Low is on-average only half full. Discussion on Question 1: Question 2: The new EOQ, based on the following information is: Orders per Year Order Size Processing Costs (\$) 1 2 3 4 5 6 7 0 Free Warehousing Costs (\$) 1 Sum of Processing and Warehousing Costs (\$) 8 9 Discussion of Question 2: Question 3: The new EOQ, based on the following information is: Orders Per Year Order Size 1 2 3 4 5 0 Processing Costs (\$) Warehousing Costs (\$) Sum of Processing and Warehousing Costs (\$) \$0,00 Discussion on Question 3: Question 4: The new EOQ, based on the following information is: Orders Per Year Order Size Processing Costs (\$) 1 2 3 4 5 6 7 0 Free Warehousing Costs (\$) Discussion on Question 4: 2 Sum of Processing and Warehousing Costs (\$) Question 5: The new EOQ, based on the following information is: Orders Per Year Order Size 1 2 3 4 5 6 7 8 9 10 11 12 13 14 0 Processing Costs (\$) Warehousing Costs (\$) \$0 Interest Costs (\$) \$2.000 Discussion on Question 5: Question 6: The new EOQ, based on the following information is: Orders Per Year Order Size Processing Costs (\$) 1 2 0 Free Warehousing Costs (\$) 3 Interest Costs (\$) 3 4 5 6 7 8 9 Discussion on Question 6: 4 Helpful formulas from the textbook: s n be found on page 362 in the Excel formula in all cells tely. he Low Nail Case Study, how Correction 1: D = annual demand in units. Correction 2: IC should be listed as (IC) -- both variables a ed by Low is on-average only half full. 5 6 Sum of Processing, Warehousing, and Interest Costs (\$) Sum of Processing, Warehousing, and Interest Costs (\$) 7 8 9 10 11 12
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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...

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