Product 1 Product 2 Product 3 Product 4 Product 5

Cost Price 20 55 12 24 60
Selling Price 30 89 20 35 105
Salvage Price 12 30 4 15 25
Lifetime 2 days 3 days 1 day 2 days 3 days

profit 10 34 8 11 45
loss 8 25 8 9 35

total 1455 611 2747 1665 873

mean 45 32.33 13.58 61.04 37.00 19.40
standard deviation 4.71 2.35 7.86 4.53 3.11

critical ratio p/p+L 0.56 0.58 0.50 0.55 0.56

order quantity Q=U+Z.SD 32.71 13.81 61.55 37.31 19.68

Z VALUE 0.081 0.100 0.064 0.067 0.090

6.866 5.772 7.767 8.165 6.241

UNSOLD PRODUCT 30 19 43 0 27
JIT LOSS 240 475 344 0 945
TOTAL JIT LOSS 5650

ANALYSIS 1. We have calculated the estimated order quantity.

2. On the basis of calculation of days and otder quantity, the supplier will get to know
3. As we can see from the above calculation, day 1 has the highest order quantity and
4. While on the other hand, the products with 3 days of life span has less quantity as
 Product 6 Product 7 Product 8 Product 9 Product 10 Product 11 Product 12 Product 13
15 18 58 24 28 21 28 12
23 27 115 39 45 32 40 20
7 11 23 12 14 8 10 4
1 day 1 day 3 days 2 days 2 days 1 day 1 day 1 day

8 9 57 15 17 11 12 8
8 7 35 12 14 13 18 8

2054 2121 418 1137 1324 3502 2450 2288

45.64 47.13 9.29 25.27 29.42 77.82 54.44 50.84
7.61 4.59 2.38 4.07 4.45 7.49 2.66 4.84

0.50 0.56 0.62 0.56 0.55 0.46 0.40 0.50

46.28 47.38 9.67 25.63 29.79 78.15 54.50 51.07

0.083 0.055 0.159 0.089 0.083 0.044 0.020 0.048

6.000 10.273 3.900 6.211 6.605 10.390 20.445 10.506

16 39 32 33 26 8 25 7
128 273 1120 396 364 104 450 56

tity, the supplier will get to know how much to order and which products to order on the basis of their lifetime.
as the highest order quantity and are perishable and should be given utmost priority.
s of life span has less quantity as observed in the above table
Product 14 Product 15 Product 16 Product 17
10 32 28 14
15 48 40 24
2 16 18 5
1 day 2 days 2 days 3 days

5 16 12 10
8 16 10 9

2197 1558 1363 2554

48.82 34.62 30.29 56.76
5.36 5.93 4.99 5.95

0.38 0.50 0.55 0.53

49.05 35.13 30.74 57.08

0.042 0.086 0.090 0.055

9.110 5.835 6.068 9.535

8 17 32 11
64 272 320 99