Min Cost Total cost

SKU Category1 Description Number of SKUs

per SKU for All SKU

13 Music 15 Err:502 Err:502

16 TV, DVD 10 Err:502 Err:502
17 Cell phones 20 Err:502 Err:502
20 Antennas, Short-wave radios 10 Err:502 Err:502
23 Batteries 50 Err:502 Err:502
27 Fuses, adapters 53 Err:502 Err:502
43 Telephones 12 Err:502 Err:502
61 Surge protectors 100 Err:502 Err:502
63 Gadgets 15 Err:502 Err:502
65 Calculators 15 Err:502 Err:502
Total 300 Err:502
1
SKU Category = First two digits of SKU number
 Current
SKU Cat KM Description Item
Source
2300105 23 BATERIA KY357 Batteries KEY
1609313 16 T.V. 25" SANYO TV Local
2780211 27 CONECTOR F-59 Cable/Connector KEY
1709786 17 TEL CEL SONY Z200 Cellphone KEY
6300612 63 PURIFICADOR DE AIRE Air Purifier KEY
1309034 13 KARAOKE JXOK5 Karaoke Machine Local
6509036 65 CALC.CIENT.SC OL153 Calculator Local
6109015 61 REGULADOR KOBLENZ BP1000 Surge Protector Local
4309113 43 TELEFONO ALAMBRICO GONDOL Telephone Local
2000234 20 RADIO FM YB400PE Radio KEY

General

Annual Holding
25.00%
Cost Interest Rate

Ocean Freight
$/Cubic ft $2.05

US Shipping

$/lb (OKC to
$0.05
Border)
 Local US Asia
Weight Volume Units/ Sales Price
Base Unit Base Unit Base Unit Duty
(lbs) (Cubic ft) Pallet ($)
Cost ($) Cost ($) Cost ($)
0.10 0.016 1,000 1.33 0.80 0.41 0.40 18%
8.82 2.08 8 176.94 129.17 116.78 115.01 30%
0.01 0.043 350 1.18 0.66 0.38 0.37 10%
0.60 0.13 128 142.22 128.00 108.09 106.67 35%
8.08 1.36 8 166.67 116.67 93.33 91.67 15%
16.50 3.50 4 138.89 108.33 75.00 73.61 50%
1.23 0.20 80 16.28 10.42 8.46 8.30 25%
0.96 0.08 200 20.51 13.33 8.41 8.21 13%
1.50 0.14 115 9.49 6.83 4.46 4.37 23%
3.00 0.16 100 174.39 148.23 120.33 118.58 20%

1 month=30 Days

Lead
Order Costs (per
Times/Replenishmen LT in Month
SKU)
t (Days)

Asia 65 2.17 Asia $12.60

Asia (Std.
7 0.23 US $4.86
Deviation)
OKC 14 0.47 Local $0.28
OKC (Std.
1.3 0.04
Deviation)
Local 3 0.10 Labeling
Cost per
$0.02
unit (Asia)
Cost per
Mexico Shipping $0.14
unit (OKC)
$/lb (Border
to Mexico $0.09
City)
$/lb
(Manzanillo
$0.12
to Mexico
City)
 Projected 2012 Local USA ASIA
Service Mean Std Dev of
Item Item
Level Demand Demand EOQ EOQ EOQ
Cost Cost
(Type 1) (Month) (Month)
0.98 1,800 250 246 0.6378 1147 0.5368 2014
0.98 115 95 5 153.1888 19 154.8554 30
0.90 675 85 166 0.5594 750 0.51635 1257
0.98 152 69 6 146.1455 22 144.363 36
0.95 125 45 5 108.6007 23 109.1981 37
0.95 30 16 3 114.95 11 119.59 17
0.95 108 65 17 10.8872 68 10.9526 109
0.95 540 270 33 9.7777 161 9.5765 261
0.98 910 334 60 5.8358 270 5.8621 433
0.95 38 17 3 144.956 11 143.004 18

1 Local (Q.R)

2 USA T=2 Weeks

3 Asia T= 4 Weeks
 Local(Continuous) Annual Cost
Reorder
Q of Std Safety Item
Mean _LTD Z value Point (R of (Q,R)
(Q,R) Dev_LTD Stock Cost
Q,R)
246 180 79.056942 2.053749 162.3631 342 (246, 342) 17280
5 11.5 30.041638 2.053749 61.69798 73 (5,73) 178254.6
166 67.5 26.87936 1.281552 34.44729 102 (166 ,102) 5346
6 15.2 21.819716 2.053749 44.81222 60 (6 , 60) 233472
6 12.5 14.230249 1.644854 23.40668 36 (6, 36) 175005
3 3 5.0596443 1.644854 8.322374 11 (3,11 ) 38998.8
17 10.8 20.554805 1.644854 33.80965 45 (17 , 45) 13504.32
33 54 85.381497 1.644854 140.4401 194 (33, 194) 86378.4
60 91 105.62007 2.053749 216.9171 308 (60, 308) 74583.6
3 3.8 5.375872 1.644854 8.842523 13 (3, 13) 67592.88
 Annual Cost US Supplier (Periodic Review (T,S) policy
Total T
Ordering Holding T TpLTD_ TpLTD_
Annual (months LT_bar
Cost Cost (weeks) mean sigma
Cost )
24.58536585 57.0726215 17361.66 2 0.47 0.47 1680 254
77.28 2073.1133 180405 2 0.47 0.47 107 92
13.6626506 19.3788022 5379.041 2 0.47 0.47 630 87
85.12 1529.99097 235087 2 0.47 0.47 142 67
70 770.216765 175845 2 0.47 0.47 117 44
33.6 266.014449 39298.41 2 0.47 0.47 28 16
21.34588235 110.216626 13635.88 2 0.47 0.47 101 63
54.98181818 523.002766 86956.38 2 0.47 0.47 504 262
50.96 421.610968 75056.17 2 0.47 0.47 849 325
42.56 383.268031 68018.71 2 0.47 0.47 35 17
Review (T,S) policy Annual Cost
Total
Item Ordering Holding Nom
z SS S Annual C_i
Cost Cost Cost Cost
Cost
2.053749 521.2532 2201 13776.48 124.9714 150.0828 1000 15052 0.5368
2.053749 188.7681 296 211401 124.9714 8256.931 1000 220782 154.8554
1.281552 111.715 742 4531.14 124.9714 37.64971 1000 5694 0.51635
2.053749 137.5703 279 266569 124.9714 6322.143 1000 274017 144.363
1.644854 72.06149 189 162901 124.9714 2748.362 1000 166774 109.1981
1.644854 25.51503 54 41382 124.9714 934.4007 1000 43441 119.59
1.644854 103.5766 204 14109.81 124.9714 350.5042 1000 15585 10.9526
1.644854 430.7744 935 63359.5 124.9714 1360.993 1000 65845 9.5765
2.053749 667.6229 1517 63726.94 124.9714 1283.812 1000 66136 5.8621
1.644854 27.14979 63 66099.94 124.9714 1305.201 1000 68530 143.004
 Asia Supplier (Periodic Review (T,S) policy
T T sigma TpLTD_
EOQ LT_bar d_bar sigma_d TpLTD_mean
(weeks) (months) _LT sigma
2014 4 0.93 2.17 1,800 250 0.23 5580 1853.038
30 4 0.93 2.17 115 95 0.23 356.5 202.9841
1257 4 0.93 2.17 675 85 0.23 2092.5 691.3918
36 4 0.93 2.17 152 69 0.23 471.2 194.5846
37 4 0.93 2.17 125 45 0.23 387.5 147.9951
17 4 0.93 2.17 30 16 0.23 93 41.15403
109 4 0.93 2.17 108 65 0.23 334.8 157.358
261 4 0.93 2.17 540 270 0.23 1674 719.4373
433 4 0.93 2.17 910 334 0.23 2821 1083.478
18 4 0.93 2.17 38 17 0.23 117.8 48.37308
 Cost
Min
Total Cost for
AC_ AC_
z SS S AC_item NOM Annual SKU
order holding
Cost
2.053749 3805.675 9385.675 11594.88 162 623.4496 1000 13380.33 13380
2.053749 416.8784 773.3784 213700 162 18216.61 1000 233079 180405
1.281552 886.0542 2978.554 4182.435 162 155.0411 1000 5499.476 5379
2.053749 399.6278 870.8278 263318 162 16982.91 1000 281463 235087
1.644854 243.4303 630.9303 163797 162 8238 1000 173197 166774
1.644854 67.69236 160.6924 43052.4 162 2442.397 1000 46656.8 39298
1.644854 258.831 593.631 14194.57 162 846.7207 1000 16203.29 13636
1.644854 1183.369 2857.369 62055.72 162 3436.453 1000 66654.17 65845
2.053749 2225.191 5046.191 64014.13 162 3883.432 1000 69059.56 66136
1.644854 79.56663 197.3666 65209.82 162 3478.571 1000 69850.39 68019