Assignment Details:

Although there are several ways to analyze opportunities for using volume transportation rates, a useful method is to calculate and compare the total annual costs of the economic order quantity (EOQ) approach.

Use the variables below to determine the volume transportation rates.

Show your analysis and calculations of the data to determine the volume transportation rates.

Then, answer the questions listed below the given variables. The purpose of this assignment is to use the inventory management approach - the economic order quantity (EOQ) model - to analyze the impact of quantity and volume transportation rates on cost. In an Excel worksheet, determine the volume transportation rates using the "Topic 3: Economic Order Quantity" data set. Show your analysis and calculations of the data.

Then, answer the following questions based on the work completed in the Excel worksheet.

1. What transportation option do you choose?
2. Which transportation option has the lowest cost?
3. What is driving the chosen transportation option cost to be lower?

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