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Please share how to do this problem on excel. Please format it similarly to the Excel sheet below A fast-food restaurant buys hamburger buns from
Please share how to do this problem on excel. Please format it similarly to the Excel sheet below
A fast-food restaurant buys hamburger buns from a local bakery. To estimate its costs, the restaurant assumes now those buns are used at the constant rate of 100 per day and are purchased at $0.025 per bun. It costs $1 for each order placed and the annual inventory holding cost per unit is 25% of the unit purchase cost. Work on worksheet Q2 for the following questions: a) How much should be ordered (in whole number) each time to minimize the restaurant's total annual costs? And what is the length of order cycles (i.e. time between orders) in days given this economic order quantity? Assume the restaurant operates 360 days per year. b) If It takes 1 week for the supplier to deliver, what should be the reorder point for the restaurant (in whole numbers)? Inputs When lead time > 0 \begin{tabular}{ll|} \hline Leadtime (L) & 1.50 weeks \\ \hline Demand in weeks (d) & 23.08 assume 52 weeks in a year \\ ROP=Ld & 34.62 \#of jackets left in inventory \\ & 35.00 roundup solution to avoid stock-out \end{tabular} The retail shop should monitor their inventory real time. Whenever the inventory level drops to 35 jackets or below, order another batch of 310 jackets. If the store follows the EOQ model, its inventory will last 3.1 months berfore ordering again, and the Total operation costs will be minimized
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