Inventory Economic Order Quantity Model

Data
Dias hbiles/ o semanas por ao 52 das / semanas
Demand rate, D 4680 unidades/ao
Setup/order cost, S 1$
Holding cost, H 54 $
Unit Price, P 200 $
Lead time, L 3 das / semanas

Probabilidad que el inventario no se

agote durante el tiempo de espera L 0.95 z 1.64
Desvio estndar de la demanda
durante el tiempo de espera L 25.98 desvo por unidad de tiempo de L
Results Desvo estndar en L
Optimal Order Quantity, Q* 13.17
Maximum Inventory 13.17
Q/2 6.58
Number of Orders D/Q 355.47

Holding cost 355.47

Setup cost 355.47

annual purchase cost 936,000

Total cost, Tc 936,711
TBO = Q/D 0.00 ao
TBO = Q/D 0.03 meses
TBO = Q/D 0.15 semanas
TBO = Q/D 0.70 dias hb
SS 42.6
Punto de Reorden R 312.6 unidades
Rotacin de inventario 95.1 Veces por ao
Inventario promedio valorizado 9838.0 $
COST TABLE Start at 3.2914029 Increment 1.0971343

Holding
cost=
Q/2xH +
Q Setup cost SS x H Total cost
3.3 1421.89 2389.66 3811.54
4.4 1066.41 2419.28 3485.69
5.5 853.13 2448.90 3302.03
6.6 710.94 2478.52 3189.47
7.7 609.38 2508.15 3117.53
8.8 533.21 2537.77 3070.98
9.9 473.96 2567.39 3041.35
11.0 426.57 2597.02 3023.58
12.1 387.79 2626.64 3014.42
13.2 355.47 2656.26 3011.73
14.3 328.13 2685.88 3014.01
15.4 304.69 2715.51 3020.20
16.5 284.38 2745.13 3029.51
17.6 266.60 2774.75 3041.35
18.7 250.92 2804.37 3055.29
19.7 236.98 2834.00 3070.98
20.8 224.51 2863.62 3088.13
21.9 213.28 2893.24 3106.52
23.0 203.13 2922.86 3125.99
24.1 193.89 2952.49 3146.38
25.2 185.46 2982.11 3167.57
26.3 177.74 3011.73 3189.47
27.4 170.63 3041.35 3211.98
28.5 164.06 3070.98 3235.04
 15
25.980762
Inventory Economic Order Quantity Model

Data
Dias hbiles por ao 250
Demand rate, D 138000 unidades/ao
Setup/order cost, S 800
Holding cost, H 1018.24 (fixed amount)
Unit Price, P
Tiempo de espera, L 60
Results
Optimal Order Quantity, Q* 465.67
Maximum Inventory 465.67
Q/2 232.83
Number of Orders D/Q 296.35

Holding cost 237079.83

Setup cost 237079.83

Unit costs 0.00

Total cost, Tc 474159.67
TBO = Q/D 0.0033743907 ao
TBO = Q/D 0.0404926889 meses
TBO = Q/D 0.1754683188 semanas
TBO = Q/D 0.8435976864 dias hb
Punto de Reorden R 33120 unidades
Rotacin de inventario 592.699586637 Veces por ao
COST TABLE Start at 116.41648 Increment 38.805494

Holding
Q Setup cost cost Total cost
116.4 948319.34 59269.96 ###
155.2 711239.50 79026.61 790266.12
194.0 568991.60 98783.26 667774.87
232.8 474159.67 118539.92 592699.59
271.6 406422.57 138296.57 544719.14
310.4 355619.75 158053.22 513672.98
349.2 316106.45 177809.88 493916.32
388.1 284495.80 197566.53 482062.33
426.9 258632.55 217323.18 475955.73
465.7 237079.83 237079.83 474159.67
504.5 218842.92 256836.49 475679.41
543.3 203211.29 276593.14 479804.43
582.1 189663.87 296349.79 486013.66
620.9 177809.88 316106.45 493916.32
659.7 167350.47 335863.10 503213.57
698.5 158053.22 355619.75 513672.98
737.3 149734.63 375376.40 525111.04
776.1 142247.90 395133.06 537380.96
814.9 135474.19 414889.71 550363.90
 853.7 129316.27 434646.36 563962.64
892.5 123693.83 454403.02 578096.84
931.3 118539.92 474159.67 592699.59
970.1 113798.32 493916.32 607714.64
1008.9 109421.46 513672.98 623094.44
 Inventory: Cost vs Quantity

250

200

150

100
Cost ($)

50

Column C Column D Column E

Order Quantity (Q)
q 330.79 uds
d (demanda
diaria
promedio
durante (T+L) 10 uds
Desviacin
Estandar (d) 3 uds
T 30 dias
L 14 das

Poltica como
% de cobertura
de la demanda 98 %
I existencias
disponibles +
pedidos 150 uds
Desviacin
Estandar T+L 19.90 uds

Z: Se obtiene
consultando la
tabla de
distribucin
normal 2.05
Inventory Quantity Discount Model

Data
Demand rate, D 5000
Setup cost, S 49
Holding cost %, I 0.2

Range 1 Range 2 Range 3

Minimum quantity 1 1000 2000
Unit Price, P 5 4.8 4.75

Results
Range 1 Range 2 Range 3
Q* (Square root fo 700.00 714.43 718.18
Order Quantity 700.00 1000.00 2000.00

Holding cost $350.00 $480.00 $950.00

Setup cost $350.00 $245.00 $122.50

Unit costs $25,000.00 $24,000.00 $23,750.00

Total cost, Tc $25,700.00 $24,725.00 $24,822.50

Base inc on 700

Cost table Q Unit cost Setup cost Holding cost Total unit cost Total Costs
1 233 5 1050.0 116.7 25000.0 26166.7
2 292 5 840.0 145.8 25000.0 25985.8
3 350 5 700.0 175.0 25000.0 25875.0
4 408 5 600.0 204.2 25000.0 25804.2
5 467 5 525.0 233.3 25000.0 25758.3
6 525 5 466.7 262.5 25000.0 25729.2
7 583 5 420.0 291.7 25000.0 25711.7
8 642 5 381.8 320.8 25000.0 25702.7
9 700 5 350.0 350.0 25000.0 25700.0
10 758 5 323.1 379.2 25000.0 25702.2
11 817 5 300.0 408.3 25000.0 25708.3
12 875 5 280.0 437.5 25000.0 25717.5
13 933 5 262.5 466.7 25000.0 25729.2
14 992 5 247.1 495.8 25000.0 25742.9
15 1050 4.8 233.3 504.0 24000.0 24737.3
16 1108 4.8 221.1 532.0 24000.0 24753.1
17 1167 4.8 210.0 560.0 24000.0 24770.0
18 1225 4.8 200.0 588.0 24000.0 24788.0
19 1283 4.8 190.9 616.0 24000.0 24806.9
20 1342 4.8 182.6 644.0 24000.0 24826.6
21 1400 4.8 175.0 672.0 24000.0 24847.0
22 1458 4.8 168.0 700.0 24000.0 24868.0
23 1517 4.8 161.5 728.0 24000.0 24889.5
24 1575 4.8 155.6 756.0 24000.0 24911.6
 Total Cost vs Order Quantity

25500.0

Cost
25000.0

24500.0

24000.0

23500.0
1 3 5 7 9 11 13 15 17 19 21 23

Quantity
Inventory ABC Analysis
Enter
Enter the
the unit
unit costs
costs and
and the
the unit
unit volumes
volumes into
into the
the shaded
shaded data
data area.
area. NOTE:
NOTE: The
The dollar
dollar volume
volume in
in
column
column FF (but
(but not
not in
in column
column L)L) isis adjusted
adjusted to
to prevent
prevent ties.
ties.
Data Results - sorted by dollar volume

Dollar Volume Nro de

Nro Items Item Unit Cost Volume Rank Items Item Volume
1 10286 90 1000 $ 90,000.00 1 10286 90
2 11526 154 500 $ 77,000.00 2 11526 154
3 12760 17 1550 $ 26,350.00 3 12760 17
4 10867 42.86 350 $ 15,001.00 4 10867 42.86
5 10500 12.5 1000 $ 12,500.00 5 10500 12.5
6 12572 14.17 600 $ 8,502.00 6 12572 14.17
7 14075 0.6 2000 $ 1,200.00 7 14075 0.6
8 01036 8.5 100 $ 850.00 8 01036 8.5
9 01307 0.42 1200 $ 504.00 9 01307 0.42
10 10572 0.6 250 $ 150.00 10 10572 0.6
 Vulumen acum % de nro de artculos Cantidad
valorizado en % almacenados items
A 72.00% 20.00% 2
ar
ar volume
volume in
in B 95.00% 20.00% 2
C 100.00% 60.00% 6

Cum
Percent of Percent of
Dollar Dollar
Unit Cost Dollar Volume Volume Volume Category
1000 $ 90,000.00 38.78% 38.78% A 95
500 $ 77,000.00 33.18% 71.97% A
1550 $ 26,350.00 11.35% 83.32% B
350 $ 15,001.00 06.46% 89.78% B
1000 $ 12,500.00 05.39% 95.17% C
600 $ 8,502.00 03.66% 98.83% C
2000 $ 1,200.00 00.52% 99.35% C
100 $ 850.00 00.37% 99.72% C
1200 $ 504.00 00.22% 99.94% C
250 $ 150.00 00.06% 100.00% C
Total $ 232,057.00 100.00%
Inventory ABC Analysis
Enter
Enter the
the unit
unit costs
costs and
and the the unit
unit volumes
volumes into
into the
the shaded
shaded data
data area.
area. NOTE:
NOTE: The
The dollar
dollar volume
volume in
in column
column FF
(but
(but not
not in
in column
column L)L) isis adjusted
adjusted toto prevent
prevent ties.
ties.
Data Results - sorted by dollar volume

Dollar
Dollar Volume
Volume Rank Item Unit Cost Volume Dollar volume Rank Item Unit Cost
1 10500 $ 32.67 12000 $ 392,000.00 1 10500 $ 32.67
2 10550 $ 21.00 16000 $ 336,000.00 2 10550 $ 21.00
3 10540 $ 13.82 22000 $ 304,000.00 3 10540 $ 13.82
4 11601 $ 224.00 500 $ 112,000.00 4 11601 $ 224.00
5 12700 $ 65.03 1550 $ 100,800.00 5 12700 $ 65.03
6 12781 $ 146.29 350 $ 51,200.00 6 12781 $ 146.29
7 12783 $ 56.00 600 $ 33,600.00 7 12783 $ 56.00
8 12785 $ 20.62 1560 $ 32,160.00 8 12785 $ 20.62
9 12787 $ 2.00 16000 $ 32,000.00 9 12787 $ 2.00
10 12789 $ 0.79 40000 $ 31,680.00 10 12789 $ 0.79
11 12791 $ 240.00 120 $ 28,800.00 11 12791 $ 240.00
12 12793 $ 4.57 5600 $ 25,600.00 12 12793 $ 4.57
13 12795 $ 17.58 810 $ 14,240.00 13 12795 $ 17.58
14 12797 $ 94.67 120 $ 11,360.00 14 12797 $ 94.67
15 13607 $ 24.40 400 $ 9,760.00 15 13607 $ 24.40
16 13604 $ 20.52 460 $ 9,440.00 16 13604 $ 20.52
17 13601 $ 16.00 560 $ 8,960.00 17 13601 $ 16.00
18 13598 $ 15.13 550 $ 8,320.00 18 13598 $ 15.13
19 13595 $ 16.32 500 $ 8,160.00 19 13595 $ 16.32
20 13592 $ 15.31 512 $ 7,840.00 20 13592 $ 15.31
21 14500 $ 0.22 35000 $ 7,680.00 21 14500 $ 0.22
22 14501 $ 0.10 78000 $ 7,520.00 22 14501 $ 0.10
23 14502 $ 0.12 60000 $ 7,360.00 23 14502 $ 0.12
24 14503 $ 0.14 40000 $ 5,760.00 24 14503 $ 0.14
25 14504 $ 0.28 20000 $ 5,600.00 25 14504 $ 0.28
26 14505 $ 0.26 16000 $ 4,160.00 26 14505 $ 0.26
27 14506 $ 0.22 18000 $ 4,000.00 27 14506 $ 0.22
$ 1,600,000.00
 Vulumen % de Item Cantidad
acum items
valorizado
en %

A 75.00% 14.81% 4
lume in
olume in column
column FF B 95.00% 40.74% 11
C 100.00% 44.44% 12

Cum
Percent of Percent of
Dollar Dollar
Volume Dollar Volume Volume Volume Category % Item
12000 $ 392,000.00 24.50% 24.50% A
16000 $ 336,000.00 21.00% 45.50% A
22000 $ 304,000.00 19.00% 64.50% A
500 $ 112,000.00 07.00% 71.50% A
1550 $ 100,800.00 06.30% 77.80% B
350 $ 51,200.00 03.20% 81.00% B
600 $ 33,600.00 02.10% 83.10% B
1560 $ 32,160.00 02.01% 85.11% B
16000 $ 32,000.00 02.00% 87.11% B
40000 $ 31,680.00 01.98% 89.09% B
120 $ 28,800.00 01.80% 90.89% B
5600 $ 25,600.00 01.60% 92.49% B
810 $ 14,240.00 00.89% 93.38% B
120 $ 11,360.00 00.71% 94.09% B
400 $ 9,760.00 00.61% 94.70% B
460 $ 9,440.00 00.59% 95.29% C
560 $ 8,960.00 00.56% 95.85% C
550 $ 8,320.00 00.52% 96.37% C
500 $ 8,160.00 00.51% 96.88% C
512 $ 7,840.00 00.49% 97.37% C
35000 $ 7,680.00 00.48% 97.85% C
78000 $ 7,520.00 00.47% 98.32% C
60000 $ 7,360.00 00.46% 98.78% C 5
40000 $ 5,760.00 00.36% 99.14% C
20000 $ 5,600.00 00.35% 99.49% C
16000 $ 4,160.00 00.26% 99.75% C
18000 $ 4,000.00 00.25% 100.00% C
Total $ 1,600,000.00
Inventory Quantity Discount Model

Data
Demand rate, D 8050
Setup cost, S 8000
Holding cost %, I 0.35
Baker manufacturing
Range 1 Range 2 Range 3
Minimum quantity 1 4000 5000
Unit Price, P 16.1 15.6 15.1

Results
Range 1 Range 2 Range 3
Q* (Square root fo 4780.91 4856.93 4936.69
Order Quantity 4780.91 4856.93 5000.00
35
Holding cost $13,470.23 $13,259.41 $13,212.50 ###
Setup cost $13,470.23 $13,259.41 $12,880.00

Unit costs $129,605.00 $125,580.00 $121,555.00 ###

###
Total cost, Tc $156,545.45 $152,098.82 $147,647.50

Base inc on 4780.914437338

Cost table Q Unit cost Setup cost Holding cost Total unit costs
1 1594 16.1 40410.7 4490.1 129605.0
2 1992 16.1 32328.5 5612.6 129605.0
3 2390 16.1 26940.5 6735.1 129605.0
4 2789 16.1 23091.8 7857.6 129605.0
5 3187 16.1 20205.3 8980.2 129605.0
6 3586 16.1 17960.3 10102.7 129605.0
7 3984 16.1 16164.3 11225.2 129605.0
8 4383 15.6 14694.8 11964.2 125580.0
9 4781 15.6 13470.2 13051.9 125580.0
10 5179 15.1 12434.1 13686.4 121555.0
11 5578 15.1 11545.9 14739.2 121555.0
12 5976 15.1 10776.2 15792.0 121555.0
13 6375 15.1 10102.7 16844.8 121555.0
14 6773 15.1 9508.4 17897.6 121555.0
15 7171 15.1 8980.2 18950.3 121555.0
16 7570 15.1 8507.5 20003.1 121555.0
17 7968 15.1 8082.1 21055.9 121555.0
18 8367 15.1 7697.3 22108.7 121555.0
19 8765 15.1 7347.4 23161.5 121555.0
20 9163 15.1 7027.9 24214.3 121555.0
21 9562 15.1 6735.1 25267.1 121555.0
22 9960 15.1 6465.7 26319.9 121555.0
23 10359 15.1 6217.0 27372.7 121555.0
24 10757 15.1 5986.8 28425.5 121555.0
 Total Cost vs Order Quant

25500.0

Cost
25000.0

24500.0

24000.0

23500.0
1 3 5 7 9 11
Cantidad Precio
1 3999 16.1
4000 4999 15.6
Quan
5000 15.1
r3 ###
Cantidad Precio
1 4600 16.5
4601 4999 15.5
5000 14

Total Costs
174505.8
167546.1
163280.6
160554.4
158790.5
157668.0
156994.5
152239.0
152102.1
147675.4
147840.1
148123.1
148502.4
148960.9
149485.5
150065.7
150693.1
151361.0
152063.9
152797.3
153557.2
154340.6
155144.8
155967.3
 Total Cost vs Order Quantity

25500.0
Cost

25000.0

24500.0

24000.0

23500.0
1 3 5 7 9 11 13 15 17 19 21 23

Quantity
CHAPTER 12: Example 8

Inventory Production Order Quantity Model

Enter
Enter the
the data
data in
in the
the shaded
shaded area.
area. You
You may
may have
have to
to do
do some
some
work
work to
to enter
enter the
the daily
daily production
production rate.
rate.

Data
Demand rate, D 1300
Setup cost, S 10
Holding cost, H 0.5 (fixed amount)
Daily production 8
Daily demand ra 4
Unit price, P

Results
Optimal produc322.49030993
Maximum Inven161.24515497
Average Invent 80.622577483
Number of Set 4.0311288741

Holding cost 40.311288741

Setup cost 40.311288741

Unit costs 0

Total cost, Tc 80.622577483

COST TABLE Start at 80.622577483 Increment by 26.874192494

Q Setup cost Holding cost Total cost

80.62 161.25 10.08 171.32
107.50 120.93 13.44 134.37
134.37 96.75 16.80 113.54
161.25 80.62 20.16 100.78
188.12 69.11 23.51 92.62
214.99 60.47 26.87 87.34
241.87 53.75 30.23 83.98
268.74 48.37 33.59 81.97
295.62 43.98 36.95 80.93
322.49 40.31 40.31 80.62
349.36 37.21 43.67 80.88
376.24 34.55 47.03 81.58
403.11 32.25 50.39 82.64
429.99 30.23 53.75 83.98
456.86 28.46 57.11 85.56
483.74 26.87 60.47 87.34
510.61 25.46 63.83 89.29
537.48 24.19 67.19 91.37
564.36 23.04 70.54 93.58
591.23 21.99 73.90 95.89
618.11 21.03 77.26 98.30
644.98 20.16 80.62 100.78
671.85 19.35 83.98 103.33
698.73 18.61 87.34 105.95
 Inventory: Cost vs Quantity
180.00
160.00
140.00
120.00
100.00
Cost ($)

80.00
60.00
40.00
20.00
0.00
1 3 5 7 9 11 13 15 17 1 9 2 1 23

Production Quantity (Q) cost

Setup Holding cost Total cost
Quantity

g cost Total cost