Decision Making Models

A. Determine the order size for Company A in the scenario found in the attached “QAT1 Task 3 Spreadsheet” that would minimize total annual cost by using the economic order quantity model, showing all of your work.

1. Identify what Company A should do with the information determined in part A.

B. Determine the lot size for Company B in the scenario found in the attached “QAT1 Task 3 Spreadsheet” that would minimize total annual cost by using the economic production lot size model (also known as the production run model), showing all of your work.

1. Identify what Company B should do with the information determined in part