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No
Europe
Options
1
2A
3 AB
4 AU
5 AA
6 AQ
7 AY
TOTAL
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
10
11
12
80
20,572
4,564
400
4,008
248
29,872
20,895
3,207
255
2,196
450
27,003
60
19,252
7,485
408
4,761
378
32,344
90
11,052
4,908
645
1,953
306
18,954
21
19,864
5,295
210
1,008
219
26,617
48
20,316
90
87
2,358
204
23,103
13,336
432
1,676
248
15,692
9
10,578
5,004
816
540
484
17,431
20
6,096
4,385
430
2,310
164
13,405
54
14,496
5,103
630
2,046
363
22,692
84
23,712
4,302
456
1,797
384
30,735
Mean
42
9,792
6,153
273
2,961
234
19,455
42
15830
4208
420
2301
307
23109
T=
L=
S
A
AB
AU
AA
AQ
AY
20,000
15,000
10,000
5,000
0
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
Std. Dev
32.4
5624.6
2204.6
203.9
1168.5
103.1
6244.0
1 week
5 weeks
Europe
Options
5,224
802
64
549
113
6,752
5,224
802
64
549
113
6,752
5,224
802
64
549
113
6,752
5,224
802
64
549
113
6,752
15
4,813
1,872
102
1,191
95
8,088
15
4,813
1,872
102
1,191
95
8,088
A
AB
AU
AA
AQ
AY
TOTAL
20
5,143
1,141
100
1,002
62
7,468
20
5,143
1,141
100
1,002
62
7,468
20
5,143
1,141
100
1,002
62
7,468
Z=
T=
L=
2.0537
1 week
5 weeks
20
5,143
1,141
100
1,002
62
7,468
Europe
Options d
d
T+L q
A
11
8 20.677
118.30
AB
3,958 1,361 3599.6 35,095.68
AU
1,052
533 1411.1 10,264.44
AA
105
49 130.44
1,005.23
AQ
576
283 748.13
5,566.14
AY
77
25
66.14
674.25
TOTAL
5,779 1,510 3995.7 48,656.84
15
4,813
1,872
102
1,191
95
8,088
15
4,813
1,872
102
1,191
95
8,088
23
2,763
1,227
162
489
77
4,741
23
2,763
1,227
162
489
77
4,741
23
2,763
1,227
162
489
77
4,741
23
2,763
1,227
162
489
77
4,741
6
4,966
1,324
53
252
55
6,656
6
4,966
1,324
53
252
55
6,656
6
4,966
1,324
53
252
55
6,656
6
4,966
1,324
53
252
55
6,656
12
5,079
23
22
590
51
5,777
12
5,079
23
22
590
51
5,777
12
5,079
23
22
590
51
5,777
12
5,079
23
22
590
51
5,777
3,334
108
419
62
3,923
3,334
108
419
62
3,923
3,334
108
419
62
3,923
3,334
108
419
62
3,923
3
2,645
1,251
204
135
121
4,359
3
2,645
1,251
204
135
121
4,359
3
2,645
1,251
204
135
121
4,359
3
2,645
1,251
204
135
121
4,359
5
1,524
1,097
108
578
41
3,353
5
1,524
1,097
108
578
41
3,353
5
1,524
1,097
108
578
41
3,353
5
1,524
1,097
108
578
41
3,353
10
10
10
10
11
11
11
11
12
12
12
12
14
3,624
1,276
158
512
91
5,675
14
3,624
1,276
158
512
91
5,675
14
3,624
1,276
158
512
91
5,675
14
3,624
1,276
158
512
91
5,675
21
5,928
1,076
114
450
96
7,685
21
5,928
1,076
114
450
96
7,685
21
5,928
1,076
114
450
96
7,685
21
5,928
1,076
114
450
96
7,685
11
2,448
1,539
69
741
59
4,867
11
2,448
1,539
69
741
59
4,867
11
2,448
1,539
69
741
59
4,867
11
2,448
1,539
69
741
59
4,867
average
11
3,958
1,052
105
576
77
5,779
Std. Dev.
7.8
1360.5
533.4
49.3
282.8
25.0
1510.2
Europe
Options
A
AB
AU
NOV
DEC
JAN
FEB
AA
AQ
AY
80
20,572
4,564
400
4,008
248
20,895
3,207
255
2,196
450
60
19,252
7,485
408
4,761
378
90
11,052
4,908
645
1,953
306
TOTAL
29,872
27,003
32,344
18,954
MAR
APR
MAY
JUN
21
19,864
5,295
210
1,008
219
48
20,316
90
87
2,358
204
13,336
432
1,676
248
9
10,578
5,004
816
540
484
26,617
23,103
15,692
17,431
In the existing model, the target inventory level is equal to the mean. So, we can calculate th
models. R=d*L .
.
Europe
Options
A
AB
AU
NOV
DEC
JAN
FEB
AA
AQ
AY
80
20,572
4,564
400
4,008
248
20,895
3,207
255
2,196
450
60
19,252
7,485
408
4,761
378
90
11,052
4,908
645
1,953
306
TOTAL
29,872
27,003
32,344
18,954
NOV
DEC
JAN
FEB
80
20,572
4,564
400
4,008
248
20,895
3,207
255
2,196
450
60
19,252
7,485
408
4,761
378
90
11,052
4,908
645
1,953
306
Europe
Options
A
AB
AU
AA
AQ
AY
MAR
APR
MAY
JUN
21
19,864
5,295
210
1,008
219
48
20,316
90
87
2,358
204
13,336
432
1,676
248
9
10,578
5,004
816
540
484
26,617
23,103
15,692
17,431
APR
MAY
JUN
48
20,316
90
87
2,358
204
13,336
432
1,676
248
9
10,578
5,004
816
540
484
MAR
21
19,864
5,295
210
1,008
219
JUL
AUG
SEP
OCT
20
6,096
4,385
430
2,310
164
54
14,496
5,103
630
2,046
363
84
23,712
4,302
456
1,797
384
42
9,792
6,153
273
2,961
234
13,405
22,692
30,735
19,455
Mean
Std. Dev
42
15830
4208
420
2301
307
23109
32.4
5624.6
2204.6
203.9
1168.5
103.1
6244.0
JUL
AUG
SEP
20
6,096
4,385
430
2,310
164
54
14,496
5,103
630
2,046
363
84
23,712
4,302
456
1,797
384
42
9,792
6,153
273
2,961
234
13,405
22,692
30,735
19,455
JUL
AUG
SEP
OCT
54
14,496
5,103
630
2,046
363
84
23,712
4,302
456
1,797
384
20
6,096
4,385
430
2,310
164
OCT
42
9,792
6,153
273
2,961
234
Mean
Std. Dev
42
15830
4208
420
2301
307
23109
Mean
32.4
5624.6
2204.6
203.9
1168.5
103.1
6244.0
Std. Dev
42
15830
4208
420
2301
307
32.4
5624.6
2204.6
203.9
1168.5
103.1
co-ef of variance
0.8
0.3553113457
0.5239028324
0.4855400686
0.5078197935
0.3359052248
0.2701960343
Z=(R-d*L)/std.dev for L
probability G(Z)
-0.6478871164
-1.4072165331
-0.9543754473
-1.0297811289
-0.9846012432
-1.4885151021
-1.8505082846
26%
8%
17.10%
15.50%
16.20%
6%
3%
R
141
37317.9899760231
11632.0046955166
1122.1074091939
6271.257635159
709.3517347985
SS
Average Inventory
78.2178
109.71778062
13573 25445.489976023
5320 8476.0046955167
492.107 807.1074091939
2819.76 4545.507635159
248.852 479.1017347985
Total cost
Holding Cost
6857.36128875
1590343.1235
529750.29347
50444.2130746
284094.227197
29943.8584249
2491433.07696
Formula
277303
$10.00
$62.50
Q0 =
Average Inventory =
360
6
$250.00
Reorder point =
Days per cycle =
Number of cycles per year =
Total Annual Holding and Ordering Cost =
Total Cost =
4621.7
Inventory
Buildup
Quantity
2
Tim e Horizon
X
0
1.9
T
63
63
CumInv
CumInv
UseInv
UseInv
CumInv
CumInv
UseInv
UseInv
CumInv
CumInv
UseInv
UseInv
CumInv
CumInv
UseInv
UseInv
CumInv
CumInv
UseInv
UseInv
CumProd
0
300.0
Time
0.0
0.0
0.0
0.4
0.4
0.4
0.4
0.8
0.8
0.8
0.8
1.2
1.2
1.2
1.2
1.5
1.5
1.5
1.5
1.9
ROP
4621.7
4621.7
y
0
1.9
InvLevel
298.0
298.0
Usage
298.0
0.0
298.0
298.0
298.0
0.0
298.0
298.0
1000
CumProd
0.0
298.0
0.0
298.0
0.0
298.0
298.0
0.0
298.0
298.0
0.0
298.0
298.0
0.0
298.0
298.0
0.0
298.0
298.0
0.0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Q0 =
Average Inventory =
298
149.0
Reorder point =
4621.7
Days per cycle =
0.4
Number of cycles per year =
930.5
Total Annual Holding and Ordering Cost = $
18,617.97
Total Cost = 69,344,367.97
4621.7
Inventory
Buildup
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
4621.7
Resume
INPUT:
Annual Demand: D/year
Cost per Unit
Inventory charge (% of unit cost)
Holding cost: H (if not given,H = i*C)
Ordering Cost
Length of year: N(months,weeks,days)
demand per (month,week,day)
Std. Deviation/(month,week,day)
Lead TimeL L(months,weeks,days))
Lead-time Standard Deviation:
Service Level
Safety Stock(if given)
D
C
i
H
S
N
d
d
L
L
P
SS
277303
$250.00
$62.50
$10.00
365
5779
1510
6
3698.73
98%
0
OUTPUT:
Optimal Order Quantity (Qopt)
Annual Inventory Holding Cost
Annual Ordering Cost
Annual Unit Cost
Total Cost
Safety Factor - z: (use E(z) & table below)
E(z)
Cycle Time - T(in days)
Number of Orders per year
Safety Stock
Reorder Point, R
=
=
=
=
=
=
=
=
=
=
=
Page 15
297
$9,281.25
$9,336.80
$69,325,750.00
$69,344,368.05
2.05
0.087
0.39
934
7582.39549879
42256
$62.50
Resume
Page 16