Demand/week frequency probability cumm.prob range week beg.

inv rand#(dem)
0 20 0.2 0.2 0 - 20 1 5 87
1 40 0.4 0.6 21 - 60 2 12 22
2 20 0.2 0.8 61 - 80 3 11 21
3 15 0.15 0.95 81 - 95 4 10 34
4 5 0.05 1 96 - 100 5 9 72
6 7 78
100 7 5 86
8 2 21
leadtime (wks) frequency probability cumm.prob range 9 11 38
1 15 0.15 0.15 0 - 15 10 10 88
2 35 0.35 0.5 16 - 50
3 50 0.5 1 51 - 100 ave 8.2

100 66.7282715 overall ave inv 7.3

holding cost = $1 per week
stockout cost = $40 per week
ordering cost = $100 per order
reoder = 2 units
order quantity = 10 units

Total Ordering Cost 200

Total Holding Cost 73
Total Inv Cost 273
demand end.inv. order? rand#(lt) lead time replenishment
3 2 yes 28 2
1 11 10
1 10
1 9
2 7
2 5
3 2 yes 94 3
1 1
1 10 10
3 7

6.4
Demand/weekfrequency probability cumm.prob range week beg.inv rand#(dem) demand
0 20 0.2 0.2 0 - 20 1 5 87 3
1 40 0.4 0.6 21 - 60 2 19 22 1
2 20 0.2 0.8 61 - 80 3 18 21 1
3 15 0.15 0.95 81 - 95 4 17 34 1
4 5 0.05 1 96 - 100 5 16 72 2
6 14 78 2
100 7 12 86 3
8 9 21 1
leadtime (wks)frequency probability cumm.prob range 9 8 38 1
1 15 0.15 0.15 0 - 15 10 7 88 3
2 35 0.35 0.5 16 - 50
3 50 0.5 1 51 - 100 ave 12.5

100 93.550270507 average inv 11.6

exp/ave demand (d) 1.45

total demand(D) 14.5
EOQ 17.029386366 or 17
exp/ave LT 2.35
ROP (eorder point) 3.4075 or 4

total ordering cost 100

total holding cost 11.6
total inv cost 111.6
end.inv. order? rand#(lt) lead time replenishment
2 yes 28 2
18 17
17
16
14
12
9
8
7
4

10.7