You are on page 1of 1

Spare Part Inventory Analysis Report

3Yrs
Annual
Cons.

StLoc.
0
Material #

000004349

Material Description

FUSE,1A,250V,AGC1,GOULD

Unit Price

CAD

Average
Annual Reorder Point
Cons.

Maximum
SoH
Level

0611

Plant

0.28

Lead Time in Days
Planned Delivery Lead
Time

GR Processing
Lead Time

5

3

Material Consumption for Past 5 Years or 60 Months
000004349

1.2

1

1
0.8
0.6
0.4
0.2

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
2015-12 2015-09 2015-06 2015-03 2014-12 2014-09 2014-06 2014-03 2013-12 2013-09 2013-06 2013-03 2012-12 2012-09 2012-06 2012-03 2011-12 2011-09 2011-06 2011-03

Annual demand

0

Service Level

90%

Service Level 90%

Per Order cost

Fixed Cost

SL Factor

1.28

Risk of a StockOut 10%

Holding Cost /Unit/Year

25 % of the Unit Price

Economic Order Quantity

Normal Distribution- Curve

EOQ Model

1

95%
Service Level
90%

68%

EOQ
Total Holding Cost
Total Ordering Cost
Total Cost

0.9
0.8

Risk of a
StockOut 10%

0.7

Cost ($)

0.6
0.5
0.4
0.3
0.2

$0.0

0.1
0
0.1%

0.6%

2.3%

6.7%

15.9%

30.9%

50.0%

69.1%

84.1%

93.3%

97.7%

99.4%

0

99.9%

50

100

150

Percentile












200

250

300

350

Order Quantity

Safety Stock (SS)

Demand During Lead Time

Reorder Point (RoP)

Economic Order Qty (EoQ)

0

0

0

0

EOQ = Economic order quantity
Co = Cost of procurement
Stock On Hand
S = Annual usage
Cm = Annual carrying costs
0
U = Cost of the item.
DDL = Demand during Lead Time or working stock.
CAD
S = Annual usage of the item (demand)
LT = Lead time in days.
SS = Safety stock.
SD = Standard deviation of monthly demand.
SL = Standard deviation of Lead-time.
SL Factor = The normal distribution value which yields the desired service level factor

Recommended MIN_MAX

-

IOC
EXISTING MIN

IOC
EXISTING MAX

SKF MIN

SKF MAX

0

0

0

0

CAD

-

CAD

-

CAD

-

CAD

-

Movement Type
Ranking

S

SKF Remarks

Lead Time Ranking

N

Unit Cost Ranking

L

NO STOCK SUGGESTED,
EXISTING MIN-MAX RETAINED