Silicon Chips, Inc.

ABC Analysis

Volume Unit Cost Peso Volume % Peso Volume

#10286 1000 ₱90.00 ₱ 90,000.00 38.78%

#11526 500 ₱154.00 ₱ 77,000.00 33.18%
#12760 1550 ₱17.00 ₱ 26,350.00 11.35%
#10867 350 ₱42.86 ₱ 15,001.00 6.46%
#10500 1000 ₱12.50 ₱ 12,500.00 5.39%
#12572 600 ₱14.17 ₱ 8,502.00 3.66%
#14075 2000 ₱0.60 ₱ 1,200.00 0.52%
#01036 100 ₱8.50 ₱ 850.00 0.37%
#01307 1200 ₱0.42 ₱ 504.00 0.22%
#10572 250 ₱0.60 ₱ 150.00 0.06%
Total ₱ 232,057.00
Cumulative ₱
volume %

38.78%
71.97%
83.32%
89.78%
95.17%
98.83%
99.35%
99.72%
99.94%
100.00%
Nathan Manufacturing, Inc.
A Production Order Quantity Model

Inputs
Annual Demand (D) 1,000
Setup Cost per Order (S) $ 10.00
Holding Cost per Unit per Year (H) $ 0.50
Daily Production Rate (p) 8
Number of Working Days per Year 250
Daily Demand Rate (d) 4

Number of Units per Order (Q*p) 283

Other Measures of Interest

Maximum Inventory Level 141
Average Inventory Level 71
Number of Setups per Year 4
Time (Working Days) between Orders 71

Annual Setup Cost $ 35.36

Annual Holding Cost $ 35.36
Total Annual Variable Inventory Cost $ 70.72