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Spare Part Inventory Analysis Report 3Yrs Annual Cons. StLoc. 1 Material # 000165198 Material Description POWDER,CHEMICAL,(0-9379),LETOURNEAU Unit Price CAD Plant 0611 CR-MINE Average Annual Reorder Point Cons. 40 14 Maximum SoH Level 8 10 9 130.92 Lead Time in Days Planned Delivery Lead Time GR Processing Lead Time 10 3 Material Consumption for Past 5 Years or 60 Months 000165198 12 10 10 8 7 7 8 6 6 4 4 4 3 3 3 3 3 3 4 2 2 2 1 1 1 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 -22015-12 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 -1 -4 -6 -6 -8 Annual demand 14 Service Level 95% Service Level 95% Per Order cost CAD 35.00 Fixed Cost SL Factor 1.64 Risk of a StockOut 5% Holding Cost /Unit/Year CAD 32.73 25 % of the Unit Price Economic Order Quantity Normal Distribution- Curve 6 EOQ Model 6000 EOQ Total Holding Cost Total Ordering Cost Total Cost 95% Service Level 95% 68% 5000 Risk of a StockOut 5% Cost ($) 4000 3000 2000 $180.0 1000 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% 99.9% 0 50 100 Percentile             150 200 250 300 350 Order Quantity Safety Stock (SS) Demand During Lead Time Reorder Point (RoP) Economic Order Qty (EoQ) 3 1 4 6 EOQ = Economic order quantity IOC Co = Cost of procurement Stock On Hand EXISTING MIN S = Annual usage Cm = Annual carrying costs 9 8 U = Cost of the item. DDL = Demand during Lead Time or working stock. CAD 1,178.28 CAD 1,047.36 S = Annual usage of the item (demand) LT = Lead time in days. Movement Type SS = Safety stock. Ranking SD = Standard deviation of monthly demand. SL = Standard deviation of Lead-time. Lead Time Ranking SL Factor = The normal distribution value which yields the desired service level factor Unit Cost Ranking Recommended MIN_MAX IOC EXISTING MAX SKF MIN SKF MAX 10 4 10 CAD 1,309.20 CAD 523.68 CAD 1,309.20 F SKF Remarks N Min= ROP and Max = ROP + EOQ L