Question

1. Create a new Problem 1 worksheet and build up the Economic Order Quantity (EOQ) model as discussed in the slides. Use the following values for the model variables:

Annual Demand: 105,000

Cost Per Unit: $27.38

Holding Costs: 7.5%

Ordering Costs: $273.00

Make sure that your model calculates the Unit Holding Costs, EOQ and Orders to Place per Year.

2. Create a new Problem 2 worksheet and build up the Earned Value Management (EVM) model as discussed in the slides. Use the following values for the model variables:

Planned Value: $45,000

Actual Cost: $39,500

Earned Value: $43,500

Balance at Completion: $172,000

Original Time in Months: 14

Your model should calculate the Cost Variance, Schedule Variance, Cost Performance Index, Schedule Performance Index, Estimate at Completion and Estimated Time. Use conditional formatting to render any “bad” values red, “good” values green and “0” values yellow.

Answer 1