Define the data, uncontrollable inputs, and decision variables that influence total inventory cost. 2. Develop mathematical functions that compute the annual ordering cost and annual holding cost based on average inventory held throughout the year in order to arrive at a model for total cost. 3. Implement your model on a spreadsheet. 4. Use data tables to find an approximate order quantity that results in the smallest total cost. 5. Use Solver to verify your result. 6. Conduct what-if analyses to study the sensitivity of total cost to changes in the model parameters. 7. Explain your results and analysis in a memo to the vice president of operations.