ALL UNIT QUANTITY DISCOUNT

GIVEN
C0 4.4
Ordering Cost(S) 5
Holding 0.2
Demad/month time 12
Annueal DEMAND(D) 10000
EOQ 337.099931
No of orders 29.6647939 times / Days

Price Breakpoint EOQ(Qi) (Q*i) Material CosOrdering CosHolding Cost

4.4 0 200 337.1 200 44000 250 88
4.2 200 400 345.03 345.03 42000 144.914935 144.9126
4 400 99999999 353.55 400 40000 125 160

MARGINAL UNIT
GIVEN
C0 4.4
Ordering Cost(S) 5
Holding 0.2
Demad/month 20000 time 12
Annueal DEMAND(D) 10000
EOQ 337.099931
No of orders 29.6647939 times / Days

V Qi Qi*
q0 0 4.4 0 V0 337.099931 200
q1 200 4.2 880 V1 1035.09834 400
q2 400 4 1720 V2 1767.76695 1767.76695
q3 0 120 V3 #DIV/0!

TRADE PROMOTIONS
 Problem Set1 -Q17
GIVEN GIVEN
C0 2 C0
Ordering Cost(S) 200 Ordering Cost(
Holding 0.25 Holding
Demad/month 1000 time 52 Demad/month
Annueal DEMAND(D) 52000 Annueal DEM
EOQ 6449.8062 EOQ
No of orders 8.06225775 times / Days No of orders
d discount 0.2 d discount
Optimal Qd 1st term 2nd term Optimal Qd
23111.1111 7166.45133

Qd 30277.5624 units/order Qd
Cycle Inventory 15138.7812 Cycle Inventor
avg flow time 0.29113041 year avg flow time
Forward Buy 23827.7562 Forward Buy
TC MIN
44338 40285
42289.8275
40285

Order Cost Holding Cost Material CosTC MIN

250 88 44000 44338.00000 41426.21356
125 172 43000 43297
28.2842712 719.1067812 40678.8225 41426.213562
#REF! #REF! #REF! #REF!
oblem Set1 -Q17

2
200
0.25
1000 time 52
52000
6449.8062
8.06225775 times / Days
0.2
1st term 2nd term
23111.1111 7166.451332

30277.5624 units/order
15138.7812
0.29113041 year
23827.7562
 AGGREGATION

Item Demand/Annual D Cost/unit Fixed Order Order Holding

X 10000 400 10000 1000 0.2
Y 3000 300 10000 1000 0.2
Z 4000 200 10000 1000 0.2
W 500 900 10000 1000 0.2

S- bar 14000

Annual Holding 92790.1

Annual Ordering 92790.1

TC (when agrregate all) 185580

AGGREGATION - Capacity Constraint

Capacity limit 2500

Item Demand/Annual D Cost/unit Fixed Order Order Holding

ludo 600 10000 400 10000 1000 0.2
chess 250 3000 300 10000 1000 0.2
carom Board 60 4000 900 10000 1000 0.2
Snakes & Ladders 1000 500 200 10000 1000 0.2

S- bar 14000

Annual Holding 109727

Annual Ordering 109727

TC (when agrregate all) 219454

Revised Truck 625
load/product
New n*/product 16

Per supplier annual orde 56000

Holding per supplier 12500
TC (when agrregate all) 68500

AGGREGATION -- Subsets
Item Demand/Annual D Cost/unit Fixed Order(S) Order Holding
X 10000 400 10000 1000 0.2
Y 3000 300 10000 1000 0.2
Z 4000 200 10000 1000 0.2
W 500 900 10000 1000 0.2

S- bar 14000

Annual Holding 92790.1

Annual Ordering 92790.1

TC (when agrregate all) 185580

 TC(order+h
Q* Material cost Ordering CosHolding olding) n D*h*C Q*(New)
1658.3123952 4000000 66332.4958 66332.4958 132664.992 6.030226892 800000 1508.78188
1048.8088482 900000 31464.2654 31464.2654 62928.5309 2.860387768 180000 452.634564
1483.2396974 800000 29664.7939 29664.7939 59329.5879 2.69679945 160000 603.512752
247.20661624 450000 22248.5955 22248.5955 44497.1909 2.022599587 90000 75.439094
149710.151 299420.301 1230000
n* 6.62786326

TC(order+h
Q* Material cost Ordering CosHolding olding) n D*h*C Q*(New)
1658.3123952 4000000 66332.4958 66332.4958 132664.992 6.030226892 800000 1275.89458
1048.8088482 900000 31464.2654 31464.2654 62928.5309 2.860387768 180000 382.768374
699.20589878 3600000 62928.5309 62928.5309 125857.062 5.720775535 720000 510.357832
524.40442409 100000 10488.0885 10488.0885 20976.177 0.953462589 20000 63.794729
171213.381 342426.761 1720000 2232.81551
n* 7.83763813
 TC(order+h
Q* Material cost Ordering CosHolding olding) n D*h*C nbar
1658.3123952 4000000 66332.4958 66332.4958 132664.992 6.030226892 800000 6.03022689
1048.8088482 900000 31464.2654 31464.2654 62928.5309 2.860387768 180000 2.86038777
1483.2396974 800000 29664.7939 29664.7939 59329.5879 2.69679945 160000 2.69679945
247.20661624 450000 22248.5955 22248.5955 44497.1909 2.022599587 90000 2.02259959
127461.555 254923.11 1140000

nbar(max) 6.03022689

n* 6.62786326
Do not calculate
for highest nbar
 Ordering
freq for
each
mi= hCmD si/mi product Ordering CosHolding Cost
1 800000 1000 6.62786326 6627.86326 60351.2752
9.48683298 1 180000 1000 6.62786326 6627.86326 13579.0369
8.94427191 1 160000 1000 6.62786326 6627.86326 12070.255
6.70820393 1 90000 1000 6.62786326 6627.86326 6789.51846
1230000 4000 26511.4531 92790.0857
 AGGREGATION

Item Demand/Annual D Cost/unit Fixed Order Order Holding

iphone6 12000 500 4000 1000 0.2
ipjone7 1200 500 4000 1000 0.2
iphone10 120 500 4000 1000 0.2

S- bar 7000

Annual Holding 68278.8

Annual Ordering 68278.8

TC (when agrregate all) 136558

AGGREGATION - Capacity Constraint

Capacity limit 2500

Item Demand/Annual D Cost/unit Fixed Order Order Holding

ludo 600 7200 500 5000 300 0.2
chess 250 3000 1000 5000 300 0.05
carom Board 60 720 3000 5000 500 0.3
Snakes & Ladders 1000 12000 100 5000 10 0.02

S- bar 6110

Annual Holding 68635.3

Annual Ordering 68635.3

TC (when agrregate all) 137271

Revised Truck 625
load/product
New n*/product 11.52

Per supplier annual orde 17596.8

Holding per supplier 625
TC (when agrregate all) 18221.8

AGGREGATION -- Subsets
Item Demand/Annual D Cost/unit Fixed Order(S) Order Holding
ludo 600 7200 500 5000 300 0.2
chess 250 3000 1000 5000 300 0.05
carom Board 60 720 3000 5000 500 0.3
Snakes & Ladders 1000 12000 100 5000 10 0.02

S- bar 6100

Annual Holding 68635.3

Annual Ordering 68635.3

TC (when agrregate all) 137271

 TC(order+h
Q* Material cost Ordering CosHolding olding) n D*h*C Q*(New)
1095.445115 6000000 54772.2558 54772.2558 109544.512 10.95445115 1200000 1230.24937
346.41016151 600000 17320.5081 17320.5081 34641.0162 3.464101615 120000 123.024937
109.5445115 60000 5477.22558 5477.22558 10954.4512 1.095445115 12000 12.3024937

77569.9894 155139.979 1332000

n* 9.75412001

TC(order+h
Q* Material cost Ordering CosHolding olding) n D*h*C Q*(New)
873.61318671 3600000 43680.6593 43680.6593 87361.3187 8.241633837 720000 640.952598
797.4960815 3000000 19937.402 19937.402 39874.8041 3.761773969 150000 267.063583
93.808315196 2160000 42213.7418 42213.7418 84427.4837 7.675225789 648000 64.0952598
7753.70879 1200000 7753.70879 7753.70879 15507.4176 1.547646465 24000 1068.25433
113585.512 227171.024 1542000 2040.36577
n* 11.23328
 TC(order+h
Q* Material cost Ordering CosHolding olding) n D*h*C nbar
873.61318671 3600000 43680.6593 43680.6593 87361.3187 8.241633837 720000 8.24163384
797.4960815 3000000 19937.402 19937.402 39874.8041 3.761773969 150000 3.76177397
93.808315196 2160000 42213.7418 42213.7418 84427.4837 7.675225789 648000 7.67522579
7753.70879 1200000 7753.70879 7753.70879 15507.4176 1.547646465 24000 1.54764647
105831.803 211663.606 1518000

nbar(max) 8.24163384

n* 11.23328
Do not calculate
for highest nbar
 Ordering
freq for
each
mi= hCmD si/mi product Ho;dling Cost
1 720000 300 11.23328 3369.984 32047.6299
15.8113883 1 150000 300 11.23328 3369.984 6676.58957
25.4558441 1 648000 500 11.23328 5616.64 28842.8669
34.6410162 1 24000 10 11.23328 112.3328 1068.25433
1542000 1110 12468.9408 68635.3408
 ALL UNIT QUANTITY DISCOUNT
GIVEN
C0 1
Ordering Cost(S) 400
Holding 0.2
Demad/month 20000 time 12
Annueal DEMAND(D) 240000
EOQ 30983.8668
No of orders 7.74596669 times / Days

Price Breakpoint EOQ(Qi) (Q*i) Material CosOrdering CosHolding Cost

1 0 20000 30983.87 20000 240000 4800 2000
0.98 20000 40000 31298.43 31298.43 235200 3067.2465 3067.24614
0.96 40000 99999999 31622.78 40000 230400 2400 3840

MARGINAL UNIT
GIVEN
C0 1
Ordering Cost(S) 400
Holding 0.2
Demad/month 20000 time 12
Annueal DEMAND(D) 240000
EOQ 30983.8668
No of orders 7.74596669 times / Days

V Qi Qi*
q0 0 1 0 V0 30983.8668 20000
q1 20000 0.98 20000 V1 44262.6668 40000
q2 40000 0.96 39600 V2 63245.5532 63245.5532
q3 0 1200 V3 #DIV/0!

TRADE PROMOTIONS
GIVEN
C0 2
Ordering Cost(S) 200
Holding 0.25
Demad/month 1000 time 52
Annueal DEMAND(D) 52000
EOQ 6449.8062
No of orders 8.06225775 times / Days
d discount 0.2
Optimal Qd 1st term 2nd term
23111.1111 7166.45133

Qd 30277.5624 units/order
Cycle Inventory 15138.7812
avg flow time 0.29113041 year
Forward Buy 23827.7562
TC MIN
246800 236640
241334.493
236640

Order Cost Holding Cost Material CosTC MIN

4800 2000 240000 246800.00000 242663.14622
2400 3960 237600 243960
1517.89328 6191.573108 234953.68 242663.14622
#REF! #REF! #REF! #REF!
 CYCLE INVENTORY

D 20000 Time 12 Annual Demand 240000

Mat. Cost ( C) 0.96
S 400 EOQ 31622.7766 Flow Rate
h 0.2 Cycle Inv 15811.3883

Annual Mat.Cost Ordering Cost Holding cost TC

230400 3035.7865538 3035.786554 236471.573
0.06588078 per year
0.79056942 per time unit
Find SS given ROP Find SS given CSL Set1-14q

D 2500 D 300
Std Deviatio 500 Std Deviatio 200
Leadctime(L 2 Leadctime(L 2
ROP 6000 ROP 6000
SigmaL 282.842712
DL 5000 DL 600
SS 1000 SS 465.234861
ROP 1065.23486

Find CSL given ROP

D 250
Std Deviatio 150
Leadctime(L 2
ROP 600

DL 500
Sigma L 212.132034
CSL 0.68132406
SS 100
ESC 43.8612588
fr 0.95613874
 Large
popular non popular
mean 6000 4000
std 100 4
rop 210 35
Lead 2 4

CSL 0 0
SS #VALUE! #VALUE!
Across all #VALUE! #VALUE!
SL 2
SigmaL 12000.5
#VALUE!

SMall
popular non popular
mean 10 2
std 5 2
rop 8 10
Lead 4 4

CSL 0.00068714 0.69146246

SS -32 2
Across all -160 10
Find SS given CSL Set1-16q Find SS given CSL Set1-17q
Sea Air A B
D 5000 5000 D 6000 4000
Std Deviatio 4000 4000 Std Deviatio 10 2
Leadctime(L 36 4 Leadctime(L0.00547945 0.0109589

SigmaL 24000 8000 SigmaL 0.74023321 0.20936957

DL 180000 20000 DL 32.8767123 43.8356164
SS 39476.487 13158.829 SS(Annual) 345.836956 97.8174627
ROP 219476.487 33158.829 ROP 378.713668 141.653079
 LITRES OF
DAYS OF MILKSHAKE
MONTH S SOLD PERIOD

1 1230 1 4920
2 1210 2 4840
3 1270 1 5080
4 1200 2 4800
5 1278 1 5112
6 1252 2 5008
7 1308 1 5232
8 1241 2 4964
9 1254 1 5016
10 1229 2 4916
11 1302 1 5208
12 1203 2 4812
13 1258 1 5032
14 1217 2 4868
15 1302 1 5208
16 1199 2 4796
17 1240 1 4960
18 1203 2 4812
19 1287 1 5148
20 1205 2 4820

FOR DEALER FOR SUPPPLY CHAIN

Mean 4977.6 4977.6
Std.Dev 148.073382 148.073382

c 15
s 0
p 17

CSL 0.11764706

O* 4801.86186 units
9955.2 496.557038 8473.87386 8473.87386

Expected prof9458.64296

O* 4801.86186 FOR SS
c 5
p 15
EXPECTED
PROFIT 48018.6186
TOTAL SS 57477.2615
PROFIT

CONTRACT-1 :Buyback
Mean 4977.6
Std.Dev 148.073382

c 15 From Dealer Perspective

s 5 Buyback value
p 17

CSL 0.16666667

O* 4834.35062 units
9955.2 443.955284 8057.25103 8057.25103
Expected
profit 9511.24472

Overstock -23.874897 36.9962737

Expected
Overstock 13.1213765

FOR SS
p 15
c 5
s 5
Buy back comp
48343.5062 65.6068827
Expected
profit for SS 48277.8993

57789.144

CONTRACT-2 :Revenue Sharing

Mean 4977.6
Std.Dev 148.073382

c 13 From Dealer Perspective

s 0 Buyback value
p 17
f 0.05

Cu 3.15
Co 13

CSL 0.19504644

O* 4850.33849 units

78074.4187 0 63054.4004
Expected
profit 15020.0183

Overstock -24.821905 40.8310654

16.0091609

FOR SS
p 17
c 5
s 0
sp for manuf 13 Buy back comp
38802.7079 4109.17993
Expected
profit for SS 42911.8878

57931.9061

Expected Profit and Marginal Contribution

profit 55
loss 5

400 0.01 190 26950

500 0.02 500
600 0.04 1240
700 0.08 2960
800 0.09 3870
900 0.11 5390
1000 0.16 8800
49900
-249500000
FOR SUPPPLY CHAIN
Mean 4977.6
Std.Dev 148.073382

c 5
s 0
p 17

CSL 0.70588235

O* 5057.7662 units
59731.2 867.337751 17850.9395 17850.9395
Expected
profit 58863.8622
 1 11.76
2 4802
3 9458.64
4 48018.62
5a
6 58863.86
7 14
8 9511.24
9 48277.9
10 20
11 15016.05
12 43050.55
13 b
14 d