Develop a method that will determine the optimal ordering

Question

Here is what we would like you to do. We want you to use the Import Beer product line as a test case for developing an optimization program. Use the Excel file that we have developed with the forecast information for the import beer product line.

Other information that you will need has been provided by Accounting: inventory holding costs, product costs and price markups. This information with the Sales Forecast and costs and prices has been provided in the Excel file.

We want you to develop a method that will determine the optimal ordering quantities so that we maximize the gross profits and also take into account inventory holding costs.

After you have developed this method, write a short report to management explaining what you did and how this method can be used going forward on a quarter by quarter basis and for the other product lines.

Attachment:- EBBD Imports Data.xlsx

Answer 1

As the linked questions to each other have a scenario that is describing below Here is what we would like you to do. We want you to employ the Import Beer product line as a test case for developing an optimization program. Use the Excel file that we have expanded through the forecast information for the import beer product line. Other information that you will require has been provided via Accounting: inventory holding costs, product costs and price markups. This information through the Sales Forecast and costs and prices has been provided in the Excel file. We want you to expand a technique that will find out the optimal ordering quantities so that we maximize the gross profits and as well take into account inventory holding costs. After you have expanded this technique, make a short report to management clarifying what you did and how this technique can be utilized going forward on a quarter by quarter basis and for the other product lines.