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    Spare Part Inventory Analysis Report: Normal Distribution-Curve EOQ Model

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    Ranjan Shankar
    The report analyzes the spare part inventory of Material #000276180 over a 3 year period. It shows the annual consumption is 3 units with an average reorder point of 2 units. The maximum level of stock is also 2 units. It provides details on the unit price, plant location, lead times and consumption history. It also calculates values for the economic order quantity, total holding costs, total ordering costs and total costs based on the demand, cost parameters and a 95% desired service level.

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    Spare Part Inventory Analysis Report: Normal Distribution-Curve EOQ Model

    Uploaded by

    Ranjan Shankar
    89 views1 page
    The report analyzes the spare part inventory of Material #000276180 over a 3 year period. It shows the annual consumption is 3 units with an average reorder point of 2 units. The maximum level of stock is also 2 units. It provides details on the unit price, plant location, lead times and consumption history. It also calculates values for the economic order quantity, total holding costs, total ordering costs and total costs based on the demand, cost parameters and a 95% desired service level.

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    000276180

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    The report analyzes the spare part inventory of Material #000276180 over a 3 year period. It shows the annual consumption is 3 units with an average reorder point of 2 units. The maximum level of stock is also 2 units. It provides details on the unit price, plant location, lead times and consumption history. It also calculates values for the economic order quantity, total holding costs, total ordering costs and total costs based on the demand, cost parameters and a 95% desired service level.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    89 views1 page

    Spare Part Inventory Analysis Report: Normal Distribution-Curve EOQ Model

    Uploaded by

    Ranjan Shankar
    The report analyzes the spare part inventory of Material #000276180 over a 3 year period. It shows the annual consumption is 3 units with an average reorder point of 2 units. The maximum level of stock is also 2 units. It provides details on the unit price, plant location, lead times and consumption history. It also calculates values for the economic order quantity, total holding costs, total ordering costs and total costs based on the demand, cost parameters and a 95% desired service level.

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    © All Rights Reserved
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    of 1

    Spare Part Inventory Analysis Report

    3Yrs
    Annual
    Cons.

    StLoc.
    1
    Material #

    000276180

    Material Description

    MODULE,CONTROL,RA423504,LEVITT

    Unit Price

    CAD

    Plant

    0611

    CR-MINE

    Average
    Annual Reorder Point
    Cons.

    Maximum
    SoH
    Level

    2,573.67

    Lead Time in Days


    Planned Delivery Lead
    Time

    GR Processing
    Lead Time

    25

    Material Consumption for Past 5 Years or 60 Months


    000276180

    2.5
    2
    2
    2
    2
    1.5
    1
    1 1
    1 1
    1 1 1
    1 1
    1
    1
    0.5 0 0 0 0 0
    0 0 0 0 0 0 0 0 0 0
    0 0 0 0
    0 0 0 0 0
    0
    0 0 0 0 0 0
    0
    0 0 0 0 0 0 0 0 0
    0 0 0 0
    0
    -0.52015-12 2015-09 2015-06 2015-03 2014-12 2014-09 2014-06 2014-03 2013-12 2013-09 2013-06 2013-03 2012-12 2012-09 2012-06 2012-03 2011-12 2011-09 2011-06 2011-03
    -1
    -1.5

    -1

    Annual demand

    Service Level

    95%

    Service Level 95%

    Per Order cost

    Fixed Cost

    SL Factor

    1.64

    Risk of a StockOut 5%

    Holding Cost /Unit/Year

    25 % of the Unit Price

    Economic Order Quantity

    Normal Distribution- Curve

    EOQ Model

    60

    EOQ
    Total Holding Cost
    Total Ordering Cost
    Total Cost

    95%
    Service Level
    95%

    68%

    50

    Risk of a
    StockOut 5%

    Cost ($)

    40

    30

    20

    $0.0

    10

    0
    0.1%

    0.6%

    2.3%

    6.7%

    15.9%

    30.9%

    50.0%

    69.1%

    84.1%

    93.3%

    97.7%

    99.4%

    99.9%

    50

    100

    Percentile

    150

    200

    250

    300

    350

    Order Quantity

    Safety Stock (SS)

    Demand During Lead Time

    Reorder Point (RoP)

    Economic Order Qty (EoQ)

    EOQ = Economic order quantity


    IOC
    Co = Cost of procurement
    Stock On Hand
    EXISTING MIN
    S = Annual usage
    Cm = Annual carrying costs
    2
    2
    U = Cost of the item.
    DDL = Demand during Lead Time or working stock.
    CAD
    5,147.34 CAD
    5,147.34
    S = Annual usage of the item (demand)
    LT = Lead time in days.
    Movement Type
    SS = Safety stock.
    Ranking
    SD = Standard deviation of monthly demand.
    SL = Standard deviation of Lead-time.
    Lead Time Ranking
    SL Factor = The normal distribution value which yields the desired service level factor

    Unit Cost Ranking

    Recommended MIN_MAX
    IOC
    EXISTING MAX

    SKF MIN

    SKF MAX

    CAD

    5,147.34 CAD

    2,573.67 CAD

    2,573.67

    SKF Remarks

    Safety Stock is Suggested as


    MIN and MAX

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