****Just need help on the executive summery. Can’t figure out where to start, what information to list from the excel spreadsheet. Please HELP!!!********
ABC Company stocks and ships to their retailers a product (KB456) each week. The Product
KB456 costs $150 per unit and is sold to the retailers for $230 per unit. Units not sold during
one week are held over and sold the next week at a cost of $15 per unit, charged on beginning
inventory. The company also charges itself $12 per unit for any lost sales. The fixed cost for the
operations is $2,000 per week. The company wants to maximize profits.The demand for product KB456 follows a uniform distribution with a minimum of 150 units and a maximum of 200 units. The company is considering three possible order levels. These are
170, 175, or 180 units per week. Beginning inventory is zero.
Project #1 – FormatExecutive SummaryProblemRecommendationRiskNext StepsModel#1 – One YearModel #2 – 30 (One Year) SummariesExhibitsGraphsStatistical SummariesDetailFormulas
What is Breakeven?What if Demand is 10% lower?What if Demand is 10% higher?What is Optimal Range Order Point?Which Order Point drives the least Lost Sales?Which Order Point drives the least “Carryover” Inventory?What if demand band narrowed by 10%?What is the least profit with the current demand level?Impact on profit if order level drops by 10%What is your “Final” recommendation?