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    Melvin Pasaporte
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    This document provides information and equations for calculating optimal cycle time, inventory levels, and costs for a company called Nishimoto Trading. Key parameters include a time period of 60 days, demand rate of 400 units, deterioration rate of 0.0005, and holding costs of $200 and $125 per unit. The optimal cycle time and inventory levels can be calculated using the provided equations to minimize total inventory costs.

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    This document provides information and equations for calculating optimal cycle time, inventory levels, and costs for a company called Nishimoto Trading. Key parameters include a time period of 60 days, demand rate of 400 units, deterioration rate of 0.0005, and holding costs of $200 and $125 per unit. The optimal cycle time and inventory levels can be calculated using the provided equations to minimize total inventory costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    21 views4 pages

    Math Formula

    Uploaded by

    Melvin Pasaporte
    This document provides information and equations for calculating optimal cycle time, inventory levels, and costs for a company called Nishimoto Trading. Key parameters include a time period of 60 days, demand rate of 400 units, deterioration rate of 0.0005, and holding costs of $200 and $125 per unit. The optimal cycle time and inventory levels can be calculated using the provided equations to minimize total inventory costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 4

    NISHIMOTO TRADING

    T= 60 Days
    = 3
    = 10
    C1= 400
    C2= 200
    C3= 125
    = 0.0005
    Q1*= (-) C2 T
    (C1+C2)

    Q2*= T(-) C1
    (C1+C2)

    1-

    {C1C2T(-)2+C32(C1+C2)}
    2(C1+C2)2

    (-) C2 T
    (C1+C2)

    1-

    {C1C2T(-)2+C32(C1+C2)}2
    2

    (C1+C2)

    (-2) C2 T
    2(C1+C2)

    OPTIMAL CYCLE TIME

    T*=

    Q1
    (-)

    C2

    (C1+C2) +

    C1Q12 +3C2Q1(2-)+3C3(-)

    Deterioration Cost
    =

    C3Q1

    Inventory Carrying Cost


    2

    = C1

    2(-)

    Q1

    2(-)

    Q1 +
    3(-)

    Shortage Cost
    = C1
    =

    C2Q22
    2(-)

    Q12 +
    2(-)

    Q13
    3(-)2

    Total Inventory Cost of the System


    Q1

    = C (Q1, Q2)

    C1
    T

    Q12 +
    2(-)

    Q13
    3(-)2

    C2Q22

    GMP
    HT
    Nishimoto
    Norpac
    Orca Bay
    Slade Gorton

    2
    3
    4
    3
    2
    1
    15

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