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	SCENARIO & SENSITIVITY ANALYSIS
	Impact analysis of key parameter changes on total inventory costs
	Ordering Cost Sensitivity							Demand Change Scenarios
	Ordering Cost ($/order)	EOQ (Total units)	Annual Order Cost ($)	Annual Holding Cost ($)	Total Cost ($)	% Change		Demand Change	Total EOQ (units)	Total Safety Stock	Total Inventory Cost ($)	% Change
	$45	8,910	$20,976	$22,063	$43,039	-29.3%		-30%	10,542	1,477	$3,991,212	-30.0%
	$68	10,912	$25,690	$27,021	$52,711	-13.4%		-15%	11,617	1,627	$4,846,472	-15.0%
	$90	12,600	$29,664	$31,202	$60,866	0.0%		Base Case	12,600	1,765	$5,701,732	0.0%
	$113	14,087	$33,166	$34,885	$68,050	11.8%		15%	13,512	1,893	$6,556,992	15.0%
	$135	15,432	$36,331	$38,214	$74,545	22.5%		30%	14,366	2,012	$7,412,252	30.0%
	$180	17,819	$41,952	$44,126	$86,077	41.4%		50%	15,432	2,162	$8,552,598	50.0%
	Holding Cost Rate Sensitivity							Service Level Impact on Safety Stock
	Holding Cost Rate	EOQ (Total units)	Annual Order Cost ($)	Annual Holding Cost ($)	Total Cost ($)	% Change		Service Level	Z-Score	Safety Stock (units)	SS Investment ($)	% Change
	9.8%	17,819	$20,976	$22,063	$43,039	-29.3%		85.0%	1.04	976	$100,335	-55.4%
	14.6%	14,549	$25,690	$27,021	$52,711	-13.4%		90.0%	1.28	1,202	$123,489	-45.1%
	19.5%	12,600	$29,664	$31,202	$60,866	0.0%		95.0%	1.65	1,549	$159,185	-29.2%
	24.4%	11,270	$33,166	$34,885	$68,050	11.8%		97.0%	1.88	1,765	$181,375	-19.3%
	29.3%	10,288	$36,331	$38,214	$74,545	22.5%		99.0%	2.33	2,187	$224,789	0.0%
	39.0%	8,910	$41,952	$44,126	$86,077	41.4%		99.9%	3.09	2,901	$298,110	32.6%
	Lead Time Impact on Safety Stock & Reorder Point
	Lead Time Change	Avg Lead Time (days)	Total Safety Stock	Total Reorder Point	SS Investment ($)	% Change
	-50%	7.2	1,248	2,960	$128,251	-29.3%
	-25%	10.8	1,529	4,440	$157,075	-13.4%
	Base Case	14.5	1,765	5,920	$181,375	0.0%
	25%	18.1	1,973	7,400	$202,783	11.8%
	50%	21.7	2,162	8,880	$222,137	22.5%
	100%	28.9	2,496	11,840	$256,502	41.4%
	Notes:
	1. Sensitivity analyses show approximate impacts based on EOQ and safety stock scaling relationships.
	2. Base case rows highlighted in blue correspond to current model assumptions.
	3. Modify Assumptions sheet parameters to see actual model impacts across all calculation sheets.
	4. Service level Z-scores: 85%=1.04, 90%=1.28, 95%=1.65, 97%=1.88, 99%=2.33, 99.9%=3.09