Most traders order intuitively, which is perfectly fine when dealing with small quantities of goods. When sales rises, in order to be efficiently ordered, insight in inventory costs is needed. These costs are divided into three groups: costs of acquisition, holding and lack of inventory (missed income due to lack of inventory). An economically justified order quantity is the one that causes the lowest inventory costs.
Besides basic calculating operators like addition (+), subtraction (-), multiplication (*), and division (/) Excel contains even a handful of functions that we can use to perform various mathematical operations. Also, there are functions for calculating the absolute value, returning the number sign, and some other functions that can be of importance, for example, to create conditions in conditional formatting, when we want to color each different order in different colors …