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  • Moonchem

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    Siddharth
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    This document provides information on ordering costs, holding costs, customer types, consumption amounts, and optimal ordering calculations for small, medium, and large customers. The optimal ordering strategy is to deliver to the three customer groups separately. This results in a total cost of $27,136.93, lower than delivering all customers in one go for $31,730.

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    moonchem

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    This document provides information on ordering costs, holding costs, customer types, consumption amounts, and optimal ordering calculations for small, medium, and large customers. The optimal ordering strategy is to deliver to the three customer groups separately. This results in a total cost of $27,136.93, lower than delivering all customers in one go for $31,730.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    58 views4 pages

    Moonchem

    Uploaded by

    Siddharth
    This document provides information on ordering costs, holding costs, customer types, consumption amounts, and optimal ordering calculations for small, medium, and large customers. The optimal ordering strategy is to deliver to the three customer groups separately. This results in a total cost of $27,136.93, lower than delivering all customers in one go for $31,730.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Ordeering Cost 400

    Holding Cost 25%


    Capacity(truck) 40,000
    C 1
    Customer Type no.of customer consumption/month Annual consumption
    Small 12 1000 12,000
    Medium 6 5000 60,000
    Large 2 12000 144,000

    holding +orderind cost(Small/C) 5120 Total cost -small 61440


    holding +orderind cost(Medium/C) 5600 Total cost -Medium 33600
    holding +orderind cost(large/C) 6440 total cost- large 12880
    total cost 107920

    Optimal lot size


    small 6196.77335393187
    medium 13856.406460551
    large 21466.252583998

    optimal ordering
    frequency
    small 1.93649167310371
    medium 4.33012701892219
    large 6.70820393249937
    Material Cost
    12000
    60000
    144000
    Option 1-delivery of all customer in one go

    total demand
    small 144,000
    medium 360,000
    large 288,000

    shipping cost 1350

    n* 8.56348838577675
    no.of orders 19.8
    order quantity cycle inventory holding cost
    small 7272.72727272727 3636.3636363636 909.0909091
    medium 18181.8181818182 9090.9090909091 2272.727273
    large 14545.4545454545 7272.7272727273 1818.181818
    total holding cost 5000
    total cost incur 31730
    separate groups

    n*small 4.352858
    n*medium 8.320503
    n*large 8.944272

    order size cycle inventory holding cost ordering cost Total


    small 33081.72 16540.85850251 4135.21463 4135.214626 8270.429
    medium 43266.62 21633.30765278 5408.32691 5408.326913 10816.65
    large 32199.38 16099.689438 4024.92236 4024.922359 8049.845

    Total cost 27136.93

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