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hotel buying sugar

how much to buy at a time

inv cg cst ordg cst total


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at what stock level reorder level

BREAD
lead time 6 days
every day demand 120
lead time CONSUMPTION 720 6*120
what is the ROL plus safety stock ?
variation from average std deviation 25
SLEVEL 0.95
ROL norminv(sl,mean lead time csn,sd) 558.0387891386
here lead time csn
sdvn
ROL

ordering policy for sugar order 1788 or say 1800 wh

Q system if we do not know the sdvn then take it as sqrt(mean)


norminv(sl,mean,sqrt(mea
555.392
annual demand 12000 kg
price 45 lead time 16
ordering cst 1500 service level 0.9
inv cg cst 25%
EOQ sqrt((2*D*O)/(P*i))
1788.854
1
0.9
0.8
0.7
0.6
inv cg cst
0.5
ordg cst
0.4 total
0.3
0.2
0.1
0
0 2000 4000 6000 8000 10000 12000 14000

reorder level

YRLY DEMAND 43800


DAYS IN A YR 365
EVERYDAY DEMAND 120
say 25

720
25 safty stock 32
say 560

order 1788 or say 1800 whenever stock comes down to558 or say 560

then take it as sqrt(mean)


norminv(sl,mean,sqrt(mean))
design replenishment system for a mall
15000 items
compny specific orderg cst 1500
inv ccg cst 25%
item specific service level 0.9
D,P,lead time
annual days lead time
stock no description demand price lead time cosn order qty
1 rice basmati,no.1 6000 140 18 295.8904 717
2 rice kolam surti 12000 65 15 493.1507 1488
3 sunflower oil forune 1 ltr 4500 95 12 147.9452 753
4 thil oil hrudayam 1 ltr 3000 240 21 172.6027 387
5 pepsodin 200 extra white 2400 65 14 92.05479 665
6 mysore sandal soap 3000 40 16 131.5068 948
7 sunrise bru 250 gm 2400 180 15 98.63014 400
15000
software
3 things
1 output ROL and order qty(when and how much)
2 input D,O,P,I,lead time,service level
3 logic to covert input to output EOQ=sqrt((2*D*O)/(P*I))
ROL=norminv(sl,mn ld tm csn,sdvn)

ROL
317
521
163
189
104
146
111
p system

order at fixed intervals of time p number of orders in a yer n =D/EOQ


peirod p = 365/n
max level
csn during period p plus x=csn in pd p+csn in lead ti
csn in lead time plus max level =norminv(sl,x,sq
safety stock
sugar in hotel periodic replenishment system
demand D 43800
ordering cost O 1200
inventory carrying cost I 30%
lead time LT 6 days
service level sl 0.95
price 30
daly csn 120 review period max level
csn in period p 3417.6 max level
csn in lead time 720
4137.6

policy order once in 54 days and order qty = 2376- stock o


of orders in a yer n =D/EOQ

x=csn in pd p+csn in lead time


max level =norminv(sl,x,sqrt(x)) 43800

EOQ 3417.601
n 12.81601
review period 28.48001
once in 54 days

review period max level


4243.40537636

nd order qty = 2376- stock on hand