C 4.75 Z1,1 120.

5
Co 35 Z1,2 135.3475 > 120.5
r 0.02 Z2,2 182.25
Cc 0.095 Z2,3 146.8425 < 182.25
Z2,4 254.3283 > 146.8425
Z4,4 486.25
1 Jan 18 49 Z4,5 313.3775 < 486.25
2 feb 31 Z4,6 269.845 < 313.3775
3 mar 23 Z4,7 265.3213 < 269.845
4 apr 95 Z4,8 252.271 < 265.3213
5 may 29 Z4,9 236.3508 < 252.271
6 june 37 Z4,10 269.4664 > 236.3508
7 july 50 Z10,10 453
8 aug 39 Z10,11 279.795 < 453
9 sept 30 Z10,12 245.81 < 279.795
10 oct 88
11 nov 22 Q1 18
12 dec 36 Q2 54
Q4 280
Q10 146

total costs
a. cumu
1 20 20 A 25
2 40 60 r 0.05
3 110 170 v 4
4 120 290
5 60 350 D 67 unit per month
6 30 380 EOQ 129 unit
7 20 400
8 30 430
9 80 510
10 120 630
11 130 760
12 40 800

Month 1 2 3 4 5 6 7 8
SI 0 150 110 0 0 80 50 30
Rep 170 0 0 120 140 0 0 0
Req 20 40 110 120 60 30 20 30
end 150 110 0 0 80 50 30 0
total replenishment costs 175
total carryng costs 84
total 259 A
r
b. v
Planning Horizon(t)
last period
with ordering 1 2 3 4 5 6 7 8
1 25 33 77
2 50 72
3 58 82 106
4 83 95 107 119 143
5 107 113 121 139
6 120 124 136
7 132 138
8 144
9
10
11
12
Zt 25 33 58 82 95 107 119 136
j 1 1 3 3 4 4 4 6

Month 1 2 3 4 5 6 7 8
SI 0 40 0 0 110 50 20 0
Rep 60 0 110 230 0 0 0 110
Req 20 40 110 120 60 30 20 30
end 40 0 0 110 50 20 0 80
 Total replenishment costs 150
Total carrying costs 68
Total 218

c.
At $25
ht 0.05 $/$/month $0.200
ct $4.00
VC 0.33

t t' Dt At Purchasing Holding costTotal cost Total cost/T

Z 1 1 20 25 $80.00 $0.00 $105.00 $105.00
Z 1 2 40 0 $160.00 $8.00 $273.00 $136.50
Z 2 2 40 25 $160.00 $0.00 $185.00 $185.00
Z 2 3 110 0 $440.00 $22.00 $647.00 323.5
Z 3 3 110 25 $440.00 $0.00 $465.00 465
Z 3 4 120 0 $480.00 $24.00 $969.00 $484.50
Z 4 4 120 25 $480.00 $0.00 $505.00 $505.00
Z 4 5 60 0 $240.00 $12.00 $757.00 $378.50
Z 4 6 30 0 $120.00 $12.00 $889.00 296.3333
Z 4 7 20 0 $80.00 $12.00 $981.00 245.25
Z 4 8 30 0 $120.00 $24.00 $1,125.00 225
Z 4 9 80 0 $320.00 $80.00 $1,525.00 254.1667
Z 9 9 80 25 $320.00 $0.00 $345.00 345
Z 9 10 120 0 $480.00 $24.00 $849.00 424.5
Z 10 10 120 25 $480.00 $0.00 $505.00 $505.00
Z 10 11 130 0 $520.00 $26.00 $1,051.00 $525.50
Z 11 11 130 25 $520.00 $0.00 $545.00 $545.00
Z 11 12 40 0 $160.00 $8.00 $713.00 356.5

Month 1 2 3 4 5 6 7 8
SI 0 0 0 0 140 80 50 30
Rep 20 40 110 260 0 0 0 0
Req 20 40 110 120 60 30 20 30
end 0 0 0 140 80 50 30 0
Total replenishment costs $175
Total carrying costs $68.000
Total 243
d.
T Demand carrying cost Co total cost lot size TC per unit
1 20 0 25 25 20 1.2500
2 40 8 25 33 60 0.5500
 3 110 52 25 77 170 0.4529
4 120 124 25 149 290 0.5138
5 60 172 25 197 350 0.5629
4 120 0 25 25 120 0.2083
5 60 12 25 37 180 0.2056
6 30 24 25 49 210 0.2333
7 20 36 25 61 230 0.2652
6 30 0 25 25 30 0.8333
7 20 4 25 29 50 0.5800
8 30 16 25 41 80 0.5125
9 80 64 25 89 160 0.5563
10 120 160 25 185 280 0.6607
9 80 0 25 25 80 0.3125
10 120 24 25 49 200 0.2450
11 130 76 25 101 330 0.3061
12 40 100 25 125 370 0.3378
11 130 0 25 25 130 0.1923
12 40 8 25 33 170 0.1941

Month 1 2 3 4 5 6 7 8
SI 0 150 110 0 60 0 50 30
Rep 170 0 0 180 0 80 0 0
Req 20 40 110 120 60 30 20 30
end 150 110 0 60 0 50 30 0
Total replenishment costs $150
Total carrying costs $104.000
Total $254
e.
T demand carrying cost Cc 0.2
1 20 0
2 40 8 < 25 (closer)
3 110 52 > 25
3 110 0
4 120 24 < 25 (closer) Q1 60
5 60 48 > 25 Q3 230
5 60 0 Q5 110
6 30 6 < 25 Q8 200
7 20 14 < 25 Q10 120
8 30 32 > 25 (closer) Q11 170
9 80 0
10 120 24 < 25 (closer)
11 130 76 > 25
11 130 0
12 40 8
Month 1 2 3 4 5 6 7 8
SI 0 40 0 120 0 80 50 30
Rep 60 0 230 0 140 0 0 0
Req 20 40 110 120 60 30 20 30
end 40 0 120 0 80 50 30 0
Total replenishment costs $125
Total carrying costs $96.000
Total $221

f. A 25
r 0.05 T 1.931669
v 4
D 67 unit per month

Month 1 2 3 4 5 6 7 8
SI 0 40 0 120 0 30 0 30
Rep 60 0 230 0 90 0 50 0
Req 20 40 110 120 60 30 20 30
end 40 0 120 0 30 0 30 0
Total replenishment costs $150
Total carrying costs $76.000
Total $226
 9 10 11 12 Total
0 0 0 0
80 120 130 40 800
80 120 130 40 800
0 0 0 0 420

25
0.05
4 Cc 0.2

9 10 11 12

184
170
160 208
161 185 237
185 211
210 218
235
160 185 210 218
8 9, 10 11 11

9 10 11 12 Total
80 0 0 40
0 120 170 0 800 6
80 120 130 40 800
0 0 40 0 340
Total cost/T

> Z1,1 => Ejected

> Z2,2 => Ejected

> Z3,3 => Ejected

> Z4,8 => Ejected

> Z9,9 => Ejected

> Z10,10 => Ejected

9 10 11 12 Total
0 0 0 40
80 120 170 0 800 7
80 120 130 40 800
0 0 40 0 340

Cc 0.2
Q1 170
Q4 180
Q6 80
Q9 200
Q11 130
Q12 40

9 10 11 12 Total
0 120 0 0
200 0 130 40 800
80 120 130 40 800
120 0 0 0 520
 9 10 11 12 Total
0 120 0 40
200 0 170 0 800
80 120 130 40 800
120 0 40 0 480

9 10 11 12 Total
0 120 0 40
200 0 170 0 800
80 120 130 40 800
120 0 40 0 380