Problem 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: $18,000
Cost Per Unit: $7.25
Holding Costs: 15%
Ordering Costs: $145.00
Make sure that your model calculates the Unit Holding Costs, EOQ and Orders to Place per Year.
Problem 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: $36,000
Actual Cost: $29,500
Earned Value: $34,000
Balance at Completion: $55,000
Original Time in Months: 9
Your model should calculate the Cost Variance, Schedule Variance, Cost Performance Index, Schedule Performance Index, Estimate at Completion and Estimated Time. Use highlighting rules to render any “bad” values red, “good” values green and “0” values yellow.
Type some comments on the worksheet about how well the project is doing time wise and cost wise. Finally type some comments about the expected cost of the project and how long the project is expected to take to finish.
Problem 3) Create a new Problem 3 worksheet and use the solver to the following:
A quilter is making table runners and placemats. It takes her 6 minutes to make a table runner and 3 minutes to make a placemat. Each placemat uses 3/4 yard of fabric and each table runner uses 1 yard of fabric.
She has 22 hours available for making the table runners and placemats and has 250 yard of fabric on hand. She makes a profit of $2 on each table runner and $1.50 on each placemat. How many of each item should she make in order to maximize profit?
There is a solution to this problem that the solver will find. Type some comments in the worksheet answering the following questions:
A – How many of each product should be sold to maximize profit?
B – What is the maximum profit that can be achieved?
C – What constraint(s) caused this solution to be the best possible?