Example problems - Inputs D S 12000 C 4000 h 500 0.2 Outputs Q Cycle Inventory Number of Orders per Year Annual Ordering and Holding Cost 980 490 12

Example problems - Inputs D S 12000 C 4000 h 500 0.2...

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Inputs D S C h 12000 4000 500 0.2 Outputs Q* Cycle Inventory Number of Orders per Year Annual Ordering and Holding Cost 980 490 12 $97,980
Average Flow Time 0.49
Inputs D(L) D(M) D(H) 12000 1200 120 Outputs combined order cost (S*) optimal order frequency (n*) Annual order cost 7000 9.75 $68,278.84
S s(L) s(M) s(H) h C(L) 4000 1000 1000 1000 0.2 500 Annual holding cost annual order and holding cost $68,278.84 $136,557.68
C(M) C(H) 500 500
Inputs q0 q1 q2 C0 C1 C2 D S 0 5000 10000 $3 $2.96 $2.92 120000 $100 Outputs Q0 Q1 Q2 Q*1 Q*2 TC1 TC2 6325 6367 6411 6367 10000 $358,969.35 $354,520.00
h 0.2
Inputs D σ(D) L ROP Q 2500 500 2 6000 10000 Output safety inventory (ss) D(L) σ(L) CSL 1000 5000 707 0.92
Inputs D σ(D) CSL (desired) L 2500 500 0.9 2 Outputs D(L) σ(L) ss 5000 707 906
Inputs Q D σ(D) L ss 10000 2500 500 2 1000 D(L) σ(L) 5000 707.1068 CSL ESC fr 0.92 25.13 0.9975
Input Calculation Variable fr σL Q ESC ss 0.975 707 10000 250 66.60585 Formula Actual ESC 250
Inputs P C Dispoal µ σ h $250 $100 $85 350 100 $5 Outputs s Cu Co CSL O* Expected Profits O $80 $150 $20 0.88 468 $49,146.47
Expected Overstock Expected Understock
Inputs P C Dispoal µ σ h $250 $100 $85 350 100 $5 Outputs s Cu Co CSL O* Expected Profits O Expected Overstock $80 $150 $20 0.88 468.0001 $49,146.47 450 108
Expected Understock 8
Option 1 Inputs p c s µ σ $50 $20 $10 1,000 500 Calculations CSL* O* EP Expected Overstock Expected Understock 0.75 1337.24 $ 94,578 1647 298 Option 2 Inputs p c s µ σ $50 $22 $10 4,000 1,000 Calculations CSL* O* EP Expected Overstock Expected Understock 0.70 4524.40 $ 98,092 715

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