Assignment: Overview: Calculate Economic Order Quantity (EOQ)
Create a blank workbook and add three worksheets labeled eoq, evm and solver.
Instructions for EOQ worksheet: Build an Economic Order Quantity (EOQ) model using these variables:
Annual Demand: 105,000
Cost Per Unit: $27.38
Holding Costs: 7.5%
Ordering Costs: $273.00
Calculate the Unit Holding Costs, EOQ and the number of Orders to Place per Year.
Instructions for EVM worksheet: Build an Earned Value Management (EVM) model using these variables:
Planned Value: $45,000
Note for understanding, this based on time, and what we expected to use based on time. Your schedule variance is based on earned and planned.
Actual Cost: $39,500
Earned Value (how much has been spent based on planned costs) : $43,500
Note for understanding, this usually based on expected costs at the task level. In other words, for the tasks complete the project was expected to use this much costs. Your cost variance is based on actual and earned.
Balance at Completion: $172,000
Original Time in Months: 14
Calculate in the model:
Cost Variance
Schedule Variance
Cost Performance Index
Schedule Performance Index
Estimate at Completion
Estimated Time
Use conditional formatting to render any "bad" values red, "good" values green and "0" values yellow. Do cell by Cell.
Analyze the data and denote your evaluation of the project. Include in the evaluation comments on schedule, costs, and performance
Instructions for solver worksheet: A quilter is making table runners and placemats. It takes her 12 minutes to make a table runner and 7.5 minutes to make a placemat. Each placemat uses 1.25 yards of fabric and each table runner uses 2/3 yard of fabric.
She has 31 hours available for making the table runners and placemats and has 237 yard of fabric on hand. She makes a profit of $2.50 on each table runner and $1.75 on each placemat. How many of each item should she make in order to maximize profit?
Use the solver to answer the following questions:
How many of each product should be sold to maximize profit?
What is the maximum profit that can be achieved?
What constraint(s) caused this solution to be the best possible?