Sheet 1: Break-Even Analysis: Set up a spreadsheet that permits the entry of any sale price, variable cost, and fixed cost. The resulting Break Even quantity is then automatically calculated and displayed.
Develop a graphical representation of the "What if" analysis that management can conduct by changing the three input values above. Develop a line graph to represent the situation. The graph should change each time new data are entered by the user. (hint: set up a "graph data" section in the spreadsheet, use zero, B-E quantity (already calculated), and 2 times B-E quantity for the X axis data, and corresponding revenues for Y axis data)
Give some thought to the overall format of the spreadsheet. Label everything, especially the cells into which the user enters data.
Sheet 2: Economic Order Quantity Analysis: Set up a spreadsheet on Sheet 2 that permits the entry of any annual demand, order cost, carrying cost as percentage of item cost, and item cost.
Give some thought to the format of the spreadsheet. Label everything. Make the sheet very easy for anyone to use by simply entering the required data.
No graph is required here.
Note: If you are not familiar with these two procedures, you will want to go to the Library and check out any text on Operations Management. Use the simplest formulation for both procedures. These two assignments are simple if you take some time to familiarize yourself with them. Send me an e-mail if you are completely stuck. "Completely Stuck" means that you have done some research and have a spreadsheet developed that doesn't seem to work. Don't just say "I'm stuck!"
You may want to look at some or all of these web pages for introductory information about EOQ. These web pages are not intended to replace your library research.
Name the spreadsheet using this naming convention: FirstNameLastNameProj1.xls (no spaces or punctuation in the file name)
E-mail your spreadsheet to me as an attachment. My e-mail address is: wbeatty@uwf.edu