Inventory Management_Inventory_Control

# Inventory Management_Inventory_Control - Enter your values...

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Example 20.1 Hotel Reservations - Full Marginal Analysis Solution \$ 200.00 Cost per unit of demand overestimated \$ 80.00 Cost per unit of demand underestimated Number of Units Ove No-shows Probability 0 1 2 3 4 5 0 0.050 - 200 400 600 800 1,000 1 0.080 80 - 200 400 600 800 2 0.100 160 80 - 200 400 600 3 0.150 240 160 80 - 200 400 4 0.200 320 240 160 80 - 200 5 0.150 400 320 240 160 80 - 6 0.110 480 400 320 240 160 80 7 0.060 560 480 400 320 240 160 8 0.050 640 560 480 400 320 240 9 0.040 720 640 560 480 400 320 10 0.010 800 720 640 560 480 400 Total Cost 337.6 271.6 228.0 212.4 238.8 321.2 C o = C u = 0 1 2 3 4 5 6 7 8 9 10 0 200 400 600 800 1000 1200 1400 Number Overbooked Expected Cost (\$) Ente - C o i room - C u i have - The (in re

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erbooked 6 7 8 9 10 1,200 1,400 1,600 1,800 2,000 1,000 1,200 1,400 1,600 1,800 800 1,000 1,200 1,400 1,600 600 800 1,000 1,200 1,400 400 600 800 1,000 1,200 200 400 600 800 1,000 - 200 400 600 800 80 - 200 400 600 160 80 - 200 400 240 160 80 - 200 320 240 160 80 - 445.6 600.8 772.8 958.8 1,156.0 ` er your values for C o and C u . is the cost of overestimating cancellations. The hotel has ms that are not filled. is the cost of underestimating cancellations. The hotel will e to pay to put the customer up at a nearby hotel. e number of overbookings with the lowest expected total cost ed) should be selected.
Example 20.2 - EOQ and Reorder Point 1000 \$5.00 \$1.25 Days in operation per year = 365 5 \$12.50 Tota Exhibit 11.5 - Basic Fixed Order Quantity Model X ROP 0 13.7 Annual demand ( D ) Ordering cost ( S ) Holding cost per unit per year ( H ) Lead time ( L ) Cost per unit ( C ) 0 20 40 60 80 100 120 0.0 50.0 100.0 Time Horizon Quantity Enter your demand, cost, and column E to generate the gra

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164.3 13.7 T CumProd Q y 63 0 0 1000 63 300.0 164.3 Time InvLevel Usage CumProd CumInv 0.0 90.0 0 CumInv 0.0 90.0 0.0 0 UseInv 0.0 90.0 90.0 0 UseInv 32.9 0.0 0 CumInv 32.9 90.0 0 CumInv 32.9 90.0 0.0 0 UseInv 32.9 90.0 90.0 0 UseInv 65.7 0.0 0 CumInv 65.7 90.0 0.0 0 CumInv 65.7 90.0 90.0 0 UseInv 65.7 90.0 0 UseInv 98.6 0.0 0 CumInv 98.6 90.0 0.0 0 CumInv 98.6 90.0 90.0 0 UseInv 98.6 90.0 0 UseInv 131.4 0.0 0 CumInv 131.4 90.0 0.0 0 CumInv 131.4 90.0 90.0 0 UseInv 131.4 90.0 0 UseInv 164.3 0.0 0
90 Average Inventory = 45.0 Reorder point = 13.7 Days per cycle = 32.9 Number of cycles per year = 11.1 al Annual Holding and Ordering Cost = \$ 111.81 Total Cost = 12,611.81 Q 0 = 140 160 180 13.7 Inventory Buildup d and lead time information in the blue cells in aph and reorder policy output.

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13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7
Exhibit 20.6 - Total Cost Graph for Basic Fixed-Order Quantity Model 1000 \$5.00 \$1.25 90 Annual demand ( D ) Per Order cost ( S ) Holding cost per unit per year ( H ) Q opt = 0 50 100 150 200 250 300 350 400 0 100 200 300 400 500 600 \$111.8 Q Total Total Total Colum Order Quantity Cost (\$) - Enter the dema cost in the blue c total cost curve. - The optimal ord - Move the bar b impact order qua

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Increment Q 10 Q CumProd QBEP TC 96 0 0 90 0 112 96 112 112 90 96 112 Q THC TSC TC 0 0.0 0 0.0 10 6.3 500.0 506.3 20 12.5 250.0 262.5 30 18.8 166.7 185.4 40 25.0 125.0 150.0 50 31.3 100.0 131.3 60 37.5 83.3 120.8 70 43.8 71.4 115.2 80 50.0 62.5 112.5 90 56.3 55.6 111.8 100 62.5 50.0 112.5 110 68.8 45.5 114.2 120 75.0 41.7 116.7 130 81.3 38.5 119.7 140 87.5 35.7 123.2 150 93.8 33.3 127.1 160 100.0 31.3 131.3 170 106.3 29.4 135.7 180 112.5 27.8 140.3 190 118.8 26.3 145.1 200 125.0 25.0 150.0 210 131.3 23.8 155.1 220 137.5 22.7 160.2 230 143.8 21.7 165.5 240 150.0 20.8 170.8 250 156.3 20.0 176.3 260 162.5 19.2 181.7 270 168.8 18.5 187.3 280 175.0 17.9 192.9 290 181.3 17.2 198.5 300 187.5 16.7 204.2 310 193.8 16.1 209.9 320 200.0 15.6 215.6 330 206.3 15.2 221.4 340 212.5 14.7 227.2 350 218.8 14.3 233.0 360 225.0 13.9 238.9 370 231.3 13.5 244.8 380 237.5 13.2 250.7 390 243.8 12.8 256.6 400 250.0 12.5 262.5 410 256.3 12.2 268.4 420 262.5 11.9 274.4 430 268.8 11.6 280.4
450 500 Holding Cost Setup Cost Cost mn G and, order cost and holding cells to the right to generate the der quantiity is calculated. below the graph to see the antity has on total cost.

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Example 20.4 Page 11 Example 20.4 - Order Quantity and Reorder Point OBJECTIVE: This template can be used to calculate different values for an EOQ model. It can also be used for models involving stochastic demand patterns.

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