Single Period Model - Full Marginal Cost Analysis Approach: Number Purchased

Single Period Model - Full Marginal Cost Analysis Approach
Si el costo al por mayor de caja de cerveza es de
Co = $ 8.00 Cost per unit of demand overestimated

Cu = $ 4.00 Cost per unit of demand underestimated
Number of Units Purchased

Units
Probability 0 1 2 3 4 5
Demanded
0 0.050 - 8.00 16.00 24.00 32.00 40.00
1 0.080 4.00 - 8.00 16.00 24.00 32.00
2 0.100 8.00 4.00 - 8.00 16.00 24.00
3 0.150 12.00 8.00 4.00 - 8.00 16.00
4 0.200 16.00 12.00 8.00 4.00 - 8.00
5 0.150 20.00 16.00 12.00 8.00 4.00 -
6 0.110 24 20 16 12 8 4
7 0.060 28 24 20 16 12 8
8 0.050 32 28 24 20 16 12
9 0.040 36 32 28 24 20 16
10 0.010 40 36 32 28 24 20
Total Cost 16.88 13.48 11.04 9.80 10.36 13.32

Exp ected C o st ($)
50
45
40
35
30
25
20
15
10
5
0
0 1 2 3 4 5 6 7 8 9 10
Number Purchased
r of Units Purchased
6 7 8 9 10
48 56 64 72 80
40 48 56 64 72
32 40 48 56 64
24 32 40 48 56
16 24 32 40 48
8 16 24 32 40
- 8 16 24 32
4 - 8 16 24
8 4 - 8 16
12 8 4 - 8
16 12 8 4 -
18 24 31 38 46
Fixed Quantity Model
Annual demand (D) 1083 Q0 =

Ordering cost (S) $50.00 Average Inventory =
Holding cost per unit per year (H) $2.00
Days in operation per year = 365 Reorder point =

Lead time (L) 15 Days per cycle =
Cost per unit (C) $8.00 Number of cycles per year =
Total Annual Holding and Ordering Cost =
Total Cost =
250.0
Inventory
1; 233.0
2; 5; 233.0
6; 9; 233.0
10; 233.0 13; 233.0
14; 233.0 17; 233.0
Buildup
Order Received
200.0
Quantity
150.0
100.0
50.0
1; 44.5 44.5
0.0 1; 0.0 5; 0.0 8; 0.0 12; 0.0 16; 0.0

0 50 100 150 200 250 300 350 400 450
Time Horizon
X ROP
0 44.5
392.6 44.5
T CumProd Q y
63 0 0 1000
63 300.0 392.6
Time InvLevel Usage CumProd

CumInv 0.0 233.0 0
CumInv 0.0 233.0 0.0 0
UseInv 0.0 233.0 233.0 0
UseInv 78.5 0.0 0
CumInv 78.5 233.0 0
CumInv 78.5 233.0 0.0 0
UseInv 78.5 233.0 233.0 0
UseInv 157.1 0.0 0
CumInv 157.1 233.0 0.0 0
CumInv 157.1 233.0 233.0 0
UseInv 157.1 233.0 0
UseInv 235.6 0.0 0
CumInv 235.6 233.0 0.0 0
CumInv 235.6 233.0 233.0 0
UseInv 235.6 233.0 0
UseInv 314.1 0.0 0
CumInv 314.1 233.0 0.0 0
CumInv 314.1 233.0 233.0 0
UseInv 314.1 233.0 0
UseInv 392.6 0.0 0
Q0 = 233
Average Inventory = 116.5
Reorder point = 44.5

Days per cycle = 78.5
Number of cycles per year = 4.6
Total Annual Holding and Ordering Cost = $ 465.40
Total Cost = 9,129.40
Inventory
13; 233.0
14; 233.0 17; 233.0
Buildup
Order Received
44.5
12; 0.0 16; 0.0

300 350 400 450
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
44.5
EOQ and Total Cost Graph
Annual demand (D) 1083

Per Order cost (S) $50.00
Holding cost per unit per year (H) $2.00
Qopt = 233
Q
Total Hold
Total Setu
6000 Total Cos
Column G
5000
Cost ($)
4000
3000
2000
1000
$465.4
0 1; $0.0
0 500 1000 1500 2000 2500 3000 3500 4000
Order Quantity
Increment Q 10
Q CumProd QBEP TC
233 0 0 233 0 465
233 465 465 233 233 465
Q THC TSC TC
0 0.0 0 0.0
10 10.0 5415.0 5425.0
20 20.0 2707.5 2727.5
30 30.0 1805.0 1835.0
40 40.0 1353.8 1393.8
50 50.0 1083.0 1133.0
60 60.0 902.5 962.5
70 70.0 773.6 843.6
80 80.0 676.9 756.9
90 90.0 601.7 691.7
100 100.0 541.5 641.5
110 110.0 492.3 602.3
120 120.0 451.3 571.3
130 130.0 416.5 546.5
140 140.0 386.8 526.8
150 150.0 361.0 511.0
160 160.0 338.4 498.4
170 170.0 318.5 488.5
180 180.0 300.8 480.8
190 190.0 285.0 475.0
200 200.0 270.8 470.8
210 210.0 257.9 467.9
220 220.0 246.1 466.1
230 230.0 235.4 465.4
240 240.0 225.6 465.6
250 250.0 216.6 466.6
260 260.0 208.3 468.3
270 270.0 200.6 470.6
280 280.0 193.4 473.4
290 290.0 186.7 476.7
300 300.0 180.5 480.5
310 310.0 174.7 484.7
320 320.0 169.2 489.2
330 330.0 164.1 494.1
340 340.0 159.3 499.3
350 350.0 154.7 504.7
360 360.0 150.4 510.4
370 370.0 146.4 516.4
380 380.0 142.5 522.5
390 390.0 138.8 528.8
400 400.0 135.4 535.4
410 410.0 132.1 542.1
420 420.0 128.9 548.9
430 430.0 125.9 555.9
440 #VALUE! #VALUE! #VALUE!
Q
Total Holding Cost
Total Setup Cost
Total Cost
Column G
3000 3500 4000 4500 5000

Basic Economic Order Quantity (EOQ) Model
Economic Ord
$3,500.00
Annual demand D= 1083 units/year
Ordering cost per order (Setup) S= 50 $/order $3,000.00
Annual carrying cost per unit H= 2 $/unit-year
$2,500.00
Working days per year = 365 days/year
Economic Order Quantity EOQ = 232.7015256 units $2,000.00
$1,500.00
Actual order quantity Q = 164.5448267
Increment DQ = $1,000.00
Number of orders per year D/Q = 6.6 orders/year $493.63
$500.00
Length of order cycle (days) Q/D = 55.5 days $-
Average inventory Q/2 = 82.27241336 units $-
Annual carrying cost (Q/2) * H = $ 164.54 0 50 100 150 20
Annual ordering cost (D/Q) * S = $ 329.09 Orde
Total annual Cost TC = $ 493.63
Carrying Cost Order
Chart Data
Q Carrying Cost Ordering Cost Total Cost Quantity Ordered Total Cost at EOQ
1 395 $ 394.91 $ 137.12 $ 532.03 164.544826719 $ 493.63
2 378 $ 378.45 $ 143.08 $ 521.54 164.544826719 $ 493.63
3 362 $ 362.00 $ 149.59 $ 511.58 164.544826719 $ 493.63
4 346 $ 345.54 $ 156.71 $ 502.25 164.544826719 $ 493.63
5 329 $ 329.09 $ 164.54 $ 493.63 164.544826719 $ 493.63
6 313 $ 312.64 $ 173.21 $ 485.84 164.544826719 $ 493.63
7 296 $ 296.18 $ 182.83 $ 479.01 164.544826719 $ 493.63
8 280 $ 279.73 $ 193.58 $ 473.31 164.544826719 $ 493.63
9 263 $ 263.27 $ 205.68 $ 468.95 164.544826719 $ 493.63
10 247 $ 246.82 $ 219.39 $ 466.21 164.544826719 $ 493.63
11 230 $ 230.36 $ 235.06 $ 465.43 164.544826719 $ 493.63
12 214 $ 213.91 $ 253.15 $ 467.05 164.544826719 $ 493.63
13 197 $ 197.45 $ 274.24 $ 471.70 164.544826719 $ 493.63
14 181 $ 181.00 $ 299.17 $ 480.17 164.544826719 $ 493.63
15 165 $ 164.54 $ 329.09 $ 493.63 164.544826719 $ 493.63
16 148 $ 148.09 $ 365.66 $ 513.75 164.544826719 $ 493.63
17 132 $ 131.64 $ 411.36 $ 543.00 164.544826719 $ 493.63
18 115 $ 115.18 $ 470.13 $ 585.31 164.544826719 $ 493.63
19 99 $ 98.73 $ 548.48 $ 647.21 164.544826719 $ 493.63
20 82 $ 82.27 $ 658.18 $ 740.45 164.544826719 $ 493.63
21 66 $ 65.82 $ 822.72 $ 888.54 164.544826719 $ 493.63
22 49 $ 49.36 $ 1,096.97 $ 1,146.33 164.544826719 $ 493.63
23 33 $ 32.91 $ 1,645.45 $ 1,678.36 164.544826719 $ 493.63
24 16 $ 16.45 $ 3,290.90 $ 3,307.35 164.544826719 $ 493.63
25 0 $ - $ - $ - 164.544826719 0
Economic Order Quantity
$493.63
$-
0 50 100 150 200 250 300 350 400 450

Order Quantity Q
Carrying Cost Ordering Cost Total Cost Column G

Reorder Point (ROP) with EOQ Ordering
Reorder Poi
Probability
Average daily demand d= 2.97 units
Average lead time L= 15 days
Std dev demand during lead time s L = 1.3555442 units
Service level SL = 97%
Increment DSL =
Stock out risk 0.03
z associated with service level 1.88
Average demand during lead time dL = 44.55 units
Safety stock SS = 2.5 units
Reorder point ROP = 47.1 units
38.0 40.0 42.0 44.0
Daliy Dem
daily demand
Chart Data
daily cumulative daily probability
demand probability demand mass ROP
1 40 0.000
2 40 0.001 40.1 0.001 47.1
3 41 0.002 40.5 0.001 47.1
4 41 0.005 40.9 0.003 47.1
5 41 0.011 41.3 0.006 47.1
6 42 0.023 41.6 0.012 47.1
7 42 0.043 42.0 0.020 47.1
8 43 0.077 42.4 0.033 47.1
9 43 0.127 42.8 0.050 47.1
10 43 0.196 43.2 0.069 47.1
11 44 0.284 43.6 0.088 47.1
12 44 0.388 44.0 0.104 47.1
13 45 0.500 44.4 0.112 47.1
14 45 0.612 44.7 0.112 47.1
15 45 0.716 45.1 0.104 47.1
16 46 0.804 45.5 0.088 47.1
17 46 0.873 45.9 0.069 47.1
18 46 0.923 46.3 0.050 47.1
19 47 0.957 46.7 0.033 47.1
20 47 0.977 47.1 0.020 47.1
21 48 0.989 47.5 0.012 47.1
22 48 0.995 47.8 0.006 47.1
23 48 0.998 48.2 0.003 47.1
24 49 0.999 48.6 0.001 47.1
25 49 1.000 49.0 0.001 47.1
Reorder Point
0.0 42.0 44.0 46.0 48.0 50.0
Daliy Demand
daily demand ROP

Fixed Time Period Model with Safety Stock
30 T Number of days between reviews

14 L Lead time in days
10 d-bar Forecast average daily demand (d-bar)
3 sd Standard deviation of demand
98% L Service Level
150 I Current inventory level
19.900 sT+L Standard deviation of demand over the review and lead time
2.054 z z-value for the stated service level
440 Average demand over the vulnerable period
40.87 Safety stock
330 q Order Quantity

Single Period Model - Full Marginal Cost Analysis Approach: Number Purchased

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Single Period Model - Full Marginal Cost Analysis Approach: Number Purchased

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Single Period Model - Full Marginal Cost Analysis Approach

Si el costo al por mayor de caja de cerveza es de

Co = $ 8.00 Cost per unit of demand overestimated

Number of Units Purchased

Total Cost 16.88 13.48 11.04 9.80 10.36 13.32

Annual demand (D) 1083 Q0 =

Days in operation per year = 365 Reorder point =

0.0 1; 0.0 5; 0.0 8; 0.0 12; 0.0 16; 0.0

Time InvLevel Usage CumProd

Reorder point = 44.5

12; 0.0 16; 0.0

Annual demand (D) 1083

3000 3500 4000 4500 5000

0 50 100 150 200 250 300 350 400 450

Carrying Cost Ordering Cost Total Cost Column G

0.0 42.0 44.0 46.0 48.0 50.0

daily demand ROP

30 T Number of days between reviews

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