Period (t) 0

Demand (Dt)
Lot Size (qo)
Planned Order Release (POR) 30
Item Cost ($ 38 / Unit) 1,140
Ordering Cost ($ 24 / Order)
Holding Cost (H = 0.03 * $38 = $1; --> H Q/2
Total Inventory Cost

Period (t) 0
Demand (Dt)
Lot Size (qo)
Planned Order Release (POR)
Item Cost ($ 38 / Unit)
Ordering Cost ($ 24 / Order)
Holding Cost (H = 0.03 * $38 = $1; --> H Q/2
Total Inventory Cost

Period (t) 0
Demand (Dt)
Lot Size (qo)
Planned Order Release (POR) 30
Item Cost ($ 38 / Unit) 1,020
Ordering Cost ($ 24 / Order) 24
Holding Cost (H = 0.03 * $ 38 = 1.14/Unit/Week) --> H Q/2
Total Inventory Cost 1,044
1 2 3 4 5
30 34 28 37 36
30 34 28 37 36
34 28 37 36 29
1,292 1,064 1,406 1,368 1,102
10 Order x $ 24 / Order
15 17 14 18.5 18

1 2 3 4 5
30 34 28 37 36
64 0 65 0 65
64 0 65 0 65
2,432 0 2,470 0 2,470
24 0 24 0 24
32 0 32.5 0 32.5
2,488 - 2,527 - 2,527

1 2 3 4 5
30 34 28 37 36
30 34 302 0 0
34 302
1,292 11,476
24 24 0 0 0
17 19 172
1,333 11,519 172
 6 7 8 9 10
29 22 50 54 46
29 22 50 54 46
22 50 54 46
836 1,900 2,052 1,748
24 / Order
14.5 11 25 27 23

6 7 8 9 10
29 22 50 54 46
0 72 0 100 0
0 72 0 100 0
0 2,736 0 3,800 0
0 24 0 24 0
0 36 0 50 0
- 2,796 - 3,874 -

6 7 8 9 10
29 22 50 54 46
0 0 0 0 0

0 0 0 0 0
Total
366
366
366
13,908
240
183
14,331

Total
366
366
366
13,908
120
183
14,211

Total
366
366
366
13,788
75
208
14,068
Period (Week) Requirements (Units) Week (t) Demand (Dt)
1 30 1 30
2 34 2 34
3 28 3 28
4 37 4 37
5 36 5 36
6 29 6 29
7 22 7 22
8 50 8 50
9 54 9 54
10 46 10 46
Total 366
Period 1 2 3 4 5 6 7 8
Demand (Rt) 30 34 28 37 36 29 22 50
9 10
54 46
 Demand Incremental Holding Cost
Period T Cummulative Holding Cost
Rt (Ph(T-1)Rt)
1 2 3 4 5
1 1 30 38 (0.03)(0)(30) = 0 $0
2 2 34 38 (0.03)(1)(34) = 39 $ 39
3 3 28 38 (0.03)(2)(28) = 64 $ 64
3 1 28 38 (0.03)(0)(28) = 0 $0
4 2 37 38 (0.03)(1)(37) = 42 $ 39
5 3 36 38 (0.03)(2)(36) = 82 $ 82
6 4 29 38 (0.03)(3)(29) = 99 $ 99
7 5 22 38 (0.03)(4)(22) = 100 $ 100
8 6 50 38 (0.03)(5)(50) = 285 $ 285
9 7 54 38 (0.03)(6)(54) = 369 $ 369
10 8 46 38 (0.03)(7)(46) = 367 $ 367
 TRC (T) TRC (T) / T
(C + col.5) (col.6 / T)
6 7
$ 24 $ 24
$ 63 $ 32
$ 127 $ 42
$ 24 $ 24
$ 63 $ 32
$ 145 $ 48
$ 244 $ 61
$ 344 $ 69
$ 629 $ 105
$ 998 $ 143
$ 1.365 $ 171