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MU13

Assignment 13
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: 105,000
Cost Per Unit: $27.38
Holding Costs: 7.5%
Ordering Costs: $273.00
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: $45,000
Actual Cost: $39,500
Earned Value: $43,500
Balance at Completion: $172,000
Original Time in Months: 14
Your model should calculate the Cost Variance, Schedule Variance, Cost Performance Index, Schedule
Performance Index, Estimate at Completion and Estimated Time. Use conditional formatting 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 12 minutes to make a table runner and 7.5
minutes to make a placemat. Each placemat uses 1.25 yards of fabric and each table runner uses 2/3
yard of fabric.
She has 31 hours available for making the table runners and placemats and has 237 yard of fabric on
hand. She makes a profit of $2.50 on each table runner and $1.75 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?
Use FORMULATEXT to show any formulas that you entered on any of the sheets. Print each sheet as a
PDF file (scale to a single page each), and upload the PDF files and your Excel workbook to the Canvas
assignment.

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