INVENTORY MANAGEMENT

LOTTING MODEL

Disusun Oleh :

Nama : Muh.Sofwwan Tahir

NPM : 7204014

Kelas : 2A/D4 E-Commerce Logistics

PROGRAM STUDI D4 E-COMMERCE LOGISTICS

POLITEKNIK POS INDONESIA BANDUNG

2022
ASSIGNMENT – 11

1. Lot For Lot

Item cost is $ 25 + N / Unit, Ordering cost is $ 11 + N / Order, and holding cost franction
per period of 0.03 and lead time 1 week. Determine the number of orders using the LFL
method from the demand data per period as shown in the table below :
Jawaban :

 Data :
Week (t) Demand (Dt)
1 31
2 35
3 29
4 38
5 37
6 30
7 23
8 51
9 55
10 47

 Solution :

Period (t) 0 1 2 3 4 5 6 7 8 9 10 Total

Demand (Dt) 31 32 29 38 37 30 23 51 55 47 376
Lot Size (qo) 31 32 29 38 37 30 23 51 55 47 376
Planned Order Release (POR) 30 34 28 37 36 29 22 50 54 46 376
Item Cost ($ 39 / Unit) 1.140 1.292 1.064 1.406 1.368 1.102 836 1.900 2.052 1.748 13.908
Ordering Cost ($ 24 / Order) 10 Order x $ 24 / Order 240
Holding Cost (H = 0.03 * $38 = $1; --> H Q/2 15 17 14 18,5 18 14,5 11 25 27 23 183
Total Inventory Cost 15.459
 2. Periodic Order Quantity
Item cost is $ 25 + N / Unit, Ordering cost is $ 11 + N / Order, and holding cost franction
per period of 0.03 and lead time 1 week. Determine the number of orders using the POQ
method from the demand data per period as shown in the table below :
Jawaban :

 Data :

Requirements
Period (Week)
(Units)
1 31
2 35
3 29
4 38
5 37
6 30
7 23
8 51
9 55
10 47
Total 376

 Solution :
Ṝ = 376/10=38

EOI =1.21 = 2 Weeks

Period (t) 0 1 2 3 4 5 6 7 8 9 10 Total
Demand (Dt) 31 32 29 38 37 30 23 51 55 47 376
Lot Size (qo) 31 32 29 38 37 30 23 51 55 47 376
Planned Order Release (POR) 34 28 37 36 29 22 50 54 46 376
Item Cost ($ 39 / Unit) 2.432 0 2.470 0 2.470 0 2.736 0 3.800 0 13.908
Ordering Cost ($ 24 / Order) 24 0 24 0 24 0 24 0 24 0 120
Holding Cost (H = 0.03 * $38 = $1; --> H Q/2 32 0 32,5 0 32,5 0 36 0 50 0 183
Total Inventory Cost 2.488 - 2.527 - 2.527 - 2.796 - 3.874 - 15.339
 3. Item cost is $ 25 + N / Unit, Ordering cost is $ 11 + N / Order, and holding cost franction
per period of 0.03 and lead time 1 week. Determine the number of orders using the Silver
– Meal Algorithm method from the demand data per period as shown in the table below :
Jawaban :
 Data
Period 1 2 3 4 5 6 7 8 9 10
Demand (Rt) 31 32 29 38 37 30 23 51 55 47

 Solution
Demand Incremental Holding Cost TRC (T) TRC (T) / T
Period T CHC
Rt (Ph(T-1)Rt) (C + col.5) (col.6 / T)
1 2 3 4 5 6 7
1 1 30 39 (0.03)(0)(30) = 0 $0 $ 25 $ 25
2 2 34 39 (0.03)(1)(34) = 39 $ 39 $ 63 $ 32
3 3 28 39 (0.03)(2)(28) = 68 $ 68 $ 128 $ 42
3 1 28 39 (0.03)(0)(28) = 0 $0 $ 24 $ 24
4 2 37 39 (0.03)(1)(37) = 43 $ 43 $ 63 $ 32
5 3 36 39 (0.03)(2)(36) = 82 $ 82 $ 145 $ 48
6 4 29 39 (0.03)(3)(29) = 99 $ 99 $ 244 $ 61
7 5 22 39 (0.03)(4)(22) = 100 $ 100 $ 344 $ 69
8 6 50 39 (0.03)(5)(50) = 285 $ 285 $ 629 $ 105
9 7 54 39 (0.03)(6)(54) = 369 $ 369 $ 998 $ 143
10 8 46 39 (0.03)(7)(46) = 367 $ 367 $ 1.365 $ 171

The total relevant cost per period decreases from period 1 to increase in period 3. The first order is
to add demand for periods 1 and 2 or 30 + 35 = 65 Units.

While the second order is for additional requests for period 3 to period 8 or 29 + 37 + 36
+29 + 22 + 50 + 54 + 46 = 310 Units.

 The order schedule for the Silver – Meal Method and the cummulative
variable costs are presented in the following table.

Period (t) 0 1 2 3 4 5 6 7 8 9 10 Total

Demand (Dt) 31 32 29 38 37 30 23 51 55 47 376
Lot Size (qo) 31 32 29 38 37 30 23 51 55 47 376
Planned Order Release (POR) 30 34 28 37 36 29 22 50 54 46 376
Item Cost ($ 39 / Unit) 1.020 1.292 11.476 13.788
Ordering Cost ($ 24 / Order) 25 25 25 0 0 0 0 0 0 0 0 75
Holding Cost (H = 0.03 * $ 38 = 1.14/Unit/Week) --> H Q/2 17 19 172 208
Total Inventory Cost 1.045 1.444 11.680 172 15.199