Adel Guitouni

2/26/20

Economic Production Quantity (Fixed)

Inventory
Enter
Enter the
the data
data in
in the shadedProduction
the shaded area.
area. Order Quantity Model
You
You may
may have
have to
to do
do some
some work
work to
to
enter
enter the
the daily
daily production
production rate.
rate.

Data
Demand rate, b 1000
Setup cost, f 40
Holding cost, c 10 (fixed amount)
Daily production rate, r 5
Daily demand rate, d 4
Unit price, p 200

Results
Optimal production quantity, 200
Maximum Inventory 40
Average Inventory 20
Number of Setups 5

Holding cost 200

Setup cost 200

Unit costs 200000

Total cost, Tc 200400

COST TABLE Start at 50 Increment 16.666667

Q Setup cost Holding cosTotal cost

50 800 50 850
66.666667 600 66.666667 666.66667
83.333333 480 83.333333 563.33333
100 400 100 500
116.66667 342.85714 116.66667 459.52381
133.33333 300 133.33333 433.33333
150 266.66667 150 416.66667
166.66667 240 166.66667 406.66667
183.33333 218.18182 183.33333 401.51515
200 200 200 400
216.66667 184.61538 216.66667 401.28205
233.33333 171.42857 233.33333 404.7619
250 160 250 410
266.66667 150 266.66667 416.66667
283.33333 141.17647 283.33333 424.5098
300 133.33333 300 433.33333
316.66667 126.31579 316.66667 442.98246
333.33333 120 333.33333 453.33333
350 114.28571 350 464.28571
366.66667 109.09091 366.66667 475.75758
383.33333 104.34783 383.33333 487.68116
400 100 400 500
416.66667 96 416.66667 512.66667
433.33333 92.307692 433.33333 525.64103
 Inventory: Cost vs Quantity
900

800

700

600

500

400
Cost ($)

300

200

100

0
50 67 33 10
0 67 33 15
0 67 33 20
0 67 33 25
0 67 33 30
0 67 33 35
0 67 33 40
0 67 33
6 66 3 33 6 66 3 33 6 66 3 33 6 66 3 33 6 66 3 33 6 66 3 33 6 66 3 33 6 66 3 33
66 33 66 33 66 33 66 33 66 33 66 33 66 33 66 33
66 33 6 6
33
3 66 33 6 6 3 3 6 6 3 3 6 6
33
3 6 6
33
3 66 33
.6 .3 .6 3. .6 .3 .6 .3 .6 .3 .6 3. .6 3. .6 .3
66 83 11
6
13 16
6
1 8 3
21
6
23
3
26
6
28
3
31
6
33 36
6
38 41
6
4 3 3

Production Quantity (Q)

Setup cost Holding cost Total cost

Adel Guitouni
2/26/20

Economic Production Quantity (Pourcentage)

Inventory Production Order Quantity Model

Enter
Enter the
the data
data in
in the
the shaded
shaded area.
area. You
You may
may have
have to
to do
do some
some work
work to
to
enter
enter the
the daily
daily production
production rate.
rate.

Data
Demand rate, b 2200
Setup cost, f 200
Holding cost, c 10.00% (percentage)
Daily production rate, r 40
Daily demand rate, d 10
Unit price, p 20

Results
Optimal production quantity, 765.94169
Maximum Inventory 574.45626
Average Inventory 287.22813
Number of Setups 2.8722813

Holding cost 574.45626

Setup cost 574.45626

Unit costs 44000

Total cost, Tc 45148.913

COST TABLE Start at 191.48542 Increment 63.828474

Q Setup cost Holding cosTotal cost

191.48542 2297.8251 143.61407 2441.4391
255.3139 1723.3688 191.48542 1914.8542
319.14237 1378.695 239.35678 1618.0518
382.97084 1148.9125 287.22813 1436.1407
446.79932 984.78217 335.09949 1319.8817
510.62779 861.6844 382.97084 1244.6552
574.45626 765.94169 430.8422 1196.7839
638.28474 689.34752 478.71355 1168.0611
702.11321 626.67956 526.58491 1153.2645
765.94169 574.45626 574.45626 1148.9125
829.77016 530.26732 622.32762 1152.5949
893.59863 492.39108 670.19898 1162.5901
957.42711 459.56501 718.07033 1177.6353
1021.2556 430.8422 765.94169 1196.7839
1085.0841 405.49854 813.81304 1219.3116
1148.9125 382.97084 861.6844 1244.6552
1212.741 362.81448 909.55575 1272.3702
1276.5695 344.67376 957.42711 1302.1009
1340.398 328.26072 1005.2985 1333.5592
1404.2264 313.33978 1053.1698 1366.5096
1468.0549 299.71631 1101.0412 1400.7575
1531.8834 287.22813 1148.9125 1436.1407
1595.7118 275.73901 1196.7839 1472.5229
1659.5403 265.13366 1244.6552 1509.7889
 Inventory: Cost vs Quantity
3000

2500

2000

1500
Cost ($)

1000

500

0
13 17 21 25 53 34 38 42 46 51 55 59 63 68 72 76 58 85 89 93 97 02 06 11
1 55 5 40 9 25 3 10 1 69 0 80 4 65 8 50 2 35 6 20 0 05 3 90 7 75 1 60 5 45 9 30 0 31 7 00 0 85 4 70 8 55 2 41 6 26 2 01
42
5 3 89 2 36 0 84 93 79 26 73 21 68 16 63 10 58 05 52 10 47 95 42 89 37 84 03
48 31 14 97 79 62 7 45 6 28 4 11 3 94 1 77 0 59 8 42 7 2 5 5 08 4 91 2 7 4 56 9 3 9 7 2 2 6 05 4 8 8 3 7 1 1 54
1. 5. 9. 2. 6. . . . . . . . . . . . 2. . . . . . . 9.
19 25 31 38 44 51 0 57 4 63 8 70 2 765 82 9 89 3 957 0 21 0 8 5 1 4 8 121 2 7 6 3 40 4 04 4 6 8 5 31 5 95 165
1 1 1 1 1 1 1 1 1

Production Quantity (Q)

Setup cost Holding cost Total cost