Show all work in Excel With formulas used incells

Question Set 2.

A manufacturing operation must periodically purchase bulkquantities of washers. The washers are purchased in boxes of 1000and are consumed at a constant rate. The operation expects topurchase 20,000 boxes over the coming year. Each box costs $120,the annual holding cost per box is $15, and the cost of placing anorder is $120 (regardless of the quantity ordered). For thefollowing questions, use the basic economic order quantity model(without quantity discounts).

1. What is the economic order quantity (in boxes)? (2pts)

2. Calculate the annual inventory holding costs based on theaverage inventory level and annual holding cost per box. (2pts)

3. Calculate the annual inventory ordering costs based on thenumber of orders expected to be placed during the coming year.(2pts)

4. Create a data table showing the total inventory costs (only)for order quantities varying from 100 to 1200 (use a step size of50). You must use a data table structure to receive full credit forthis problem. If you have any doubt as to what a data table is,please ask your lab TA. (8pts)

5. Create a scatter chart (use the one with markers and smoothlines) showing how total inventory costs are a function of theorder quantity. Be sure to label your axes appropriately.(6pts)