"Deliverables" Sheet

1. Calculate the Annual Demand (C6, C18, and C30) for each item.
2. Calculate the Ordering Cost (C7, C19, and C31) for each item.
3. Input the Holding Cost (C8, C20, and C32) for each item.
4. Calculate the optimal ordering quantity (C10, C22, and C34) for each item.
5. Calculate the expected number of orders (C11, C23, C35) per year.
6. Calculate the annual cost of holding (C12, C24, C36).
7. Calculate the annual cost of ordering (C13, C25, C37).
8. Calculate the annual cost of inventory (C14, C26, C38).
9. Input the original total inventory costs prior to your analysis (F6).
10. Calculate the new total inventory costs based on your analysis (F7).
11. Calculate the total savings with the new inventory ordering quantities in terms of Total Inventory Cost (F10).
12. Provide your Observation and Recommendation in the merged cells E19:O37.

Ensure that all the Deliverables and Documentation sheet requirements listed above are completed to receive credit.

The question involves various calculations related to inventory management such as annual demand, ordering cost, holding cost, optimal ordering quantity, annual cost of holding, ordering and inventory, and total savings. Additionally, the person needs to input some information and provide an analysis with recommendations.

Explanation:

This task involves doing calculations related to inventory management. First, you will need to calculate the Annual Demand (C6, C18, and C30), which means determining how much of each item is expected to be needed in a year. Likewise, you have to compute the Ordering Cost (C7, C19, and C31), which represents the financial cost of placing an order for replenishment.

The Holding Cost (C8, C20, and C32) information needs to be inputted and it represents the cost of maintaining the inventory. Calculate the optimal ordering quantity (C10, C22, and C34), which is the best quantity to order to minimize total inventory costs. Do the math for the expected number of orders (C11, C23, C35) to find out how many orders are expected to be placed in a year. Lastly, compute the annual costs of holding (C12, C24, C36), ordering (C13, C25, C37), and inventory (C14, C26, C38).

Then, you'll need to input the original total inventory costs (F6) and calculate the new total inventory costs with the analysis results (F7). Calculate the total savings with the new ordering quantities (F10). Finally, provide your Observation and Recommendation in cells E19:O37, where you discuss the implications of your analysis. Remember, you must provide information in all of the places listed above to get credit.

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