Submitted by: Submitted by msteph31
Views: 10
Words: 328
Pages: 2
Category: Business and Industry
Date Submitted: 03/22/2016 11:58 AM
Actual total demand in the first 21 weeks 2142 Actual total demand in week 11-21 520
Projected total demand for 1 year 5304 Projected total demand for 1 year 2458
-> D= 5304 -> D= 2458
cost of ordering one lot (in $ per lot): S 20 cost of ordering one lot (in $ per lot): S 10
cost of holding one unit in inventory for a year: H 1.85 Assumption: the mentioned inventory cost (21%) is per year -> 12.99$*(1-0,32(percentage of the gross margin))*0,21 (cost of inventory) cost of holding one unit in inventory for a year: H 0.97 Assumption: the mentioned inventory cost (21%) is per year
Q*= optimal quantity to order 338 Q*= optimal quantity to order 225
numbers of orders placed annually:N 15.68 numbers of orders placed annually:N 10.92
-> Annual Ordering Cost: D/Q*(S) 313.67 -> Annual Ordering Cost: D/Q*(S) 109.23
Average cycle inventory level: Q*/2 169 Average cycle inventory level: Q*/2 113
->Annual Holding Cost: Q*/2 (H) 313.67 ->Annual Holding Cost: Q*/2 (H) 109.23
Safety Stock (SS): Safety Stock (SS):
for a service level of 95%: z 1.645 for a service level of 95%: z 1.645
Standard deviation: σ 2.863564213 Standard deviation: σ 11.3849981
Lead time: L (in days) 14 Lead time: L (in days) 21
17.63 85.82
-> Annual Holding Cost for Safety Stock: SS(H) 32.69 -> Annual Holding Cost for Safety Stock: SS(H) 83.32
Reorder point: R 221.07 Reorder point: R 227.25
(R= d*L + SS; d=daily demand -> D/365) (R= d*L + SS; d=daily demand -> D/365)
Total Annual Cost for inventory with an inventory system: C Total Annual Cost for inventory with an inventory system: C
C= D/Q* (S)+ Q*/2 (H) + SS(H) 660.03 C= D/Q* (S)+...