item no. UNIT COST UNITS USAGE/TOTAL COST % OF TOTAL CF S.

no % items
11 7.1 11,500 81,650 22.95 22.95 1 8.33
2 3 24,000 72,000 20.24 43.19 2 16.67 100.00
5 1.5 38,000 57,000 16.02 59.21 3 25.00 90.00

cumul atve percenta ge ua s a ge

1 5 7,000 35,000 9.84 69.05 4 33.33 80.00
12 6.2 4,100 25,420 7.15 76.19 5 41.67 70.00

6 0.5 40,000 20,000 5.62 81.81 6 50.00 60.00

50.00
3 10 1,500 15,000 4.22 86.03 7 58.33
40.00
4 22 600 13,200 3.71 89.74 8 66.67
30.00
2
7 0.2 60,000 12,000 3.37 93.11 9 75.00
20.00
10 0.4 29,000 11,600 3.26 96.37 10 83.33
10.00
8 3.5 3,000 10,500 2.95 99.33 11 91.67
0.00
9 8 300 2,400 0.67 100.00 12 100.00 8
355770
 Pareto chart
99.33 100.00
100.00 96.37
93.11
89.74
90.00 86.03
81.81
cumul atve percenta ge ua s a ge

80.00 76.19
69.05
70.00
59.21
60.00
50.00 43.19
40.00
30.00
22.95
20.00
10.00
0.00
8.33 16.67 25.00 33.33 41.67 50.00 58.33 66.67 75.00 83.33 91.67 100.00

percenta ge i tems
Basic EOQ model
formula solver C
annual demand () 1800 1800 900
ordering cost per corder (A) 16 16
800
unit cost ( C) 42 42
700
inventory carrying charge (I) 0.2 0.2
order quantty (Q) 82.80787 82.80787 600
order cycle (T) 16.7916 16.7916 500
optmal number of orders (m) 21.73707 21.73707
400
ordering cost for planning horizon (O.C) 347.793 347.793
holding cost (H.C) 347.793 347.793 300

purchase cost 75600 75600 200

total variable cost 695.5861 695.5861 100
total cost 76295.59 76295.59 42 52 62 72 82
Orderi ng Cost Ho
Table of values
Quantty 42 52 62 72 82 92
Ordering Cost 685.7143 553.8462 464.5161 400 351.2195 313.0435
Holding Cost 176.4 218.4 260.4 302.4 344.4 386.4
Total variable Cost 862.1143 772.2462 724.9161 702.4 695.6195 699.4435
 Costs

62 72 82 92 102 112 122 132

Orderi ng Cost Hol di ng Cost Total vari a bl e Cost

102 112 122 132

282.3529 257.1429 236.0656 218.1818
428.4 470.4 512.4 554.4
710.7529 727.5429 748.4656 772.5818
Basic EPQ model
formula solver
annual demand () 2500.00 2500.00 2600
ordering cost per corder (A) 250.00 250.00
2300
unit cost ( C) 30.00 30.00
Producton rate () 4800.00 4800.00 2000
inventory carrying charge (I) 0.13 0.13
1700
order quantty (Q) 559.02 559.02
order cycle (T) 81.62 81.62 1400
optmal number of orders (m) 4.47 4.47
1100
ordering cost for planning horizon (O.C) 1118.03 1118.03
holding cost (H.C) 1118.03 1118.03 800
purchase cost 75000.00 75000.00
500
total variable cost 2236.07 2236.07 360 420 480 5
total cost 77236.07 77236.07 Orderi ng Cost

Table of values
Quantty 360 420 480 540 600
Ordering Cost 1736.111111 1488.095238 1302.083 1157.407 1041.667
Holding Cost 720 840 960 1080 1200
Total variable Cost 2456.111111 2328.095238 2262.083 2237.407 2241.667
 Costs

420 480 540 600 660 720 780 840

Orderi ng Cost Hol di ng Cost Tota l vari a bl e Cost

660 720 780 840

946.9697 868.0556 801.2821 744.0476
1320 1440 1560 1680
2266.97 2308.056 2361.282 2424.048
EOQ with shortages 900.0
formula solver
800.0
demand rate () 10000 10000
700.0
ordering cost per order (A) 10 10
inventory carrying charge (I) 0.5 0.5 600.0
unit cost ( C) 8 8 500.0
shortages cost per unit () 5 5 400.0
quantty (Q) 300.00 300.00
300.0
shortages (S) 133.33 133.33
200.0
total shortages cost 148.15 148.15
total holding cost 185.19 185.19 100.0
total ordering cost 333.33 333.33 0.0
150 185 220 255 290
total variable cost 666.67 666.67
max inventory 166.67 166.67 tota l s hortages cost tota l hol di

Table of values
Quantty 150 185 220 255 290 325 360 395
shortages 66.7 82.2 97.8 113.3 128.9 144.4 160.0 175.6
total shortages cost 74.1 91.4 108.6 125.9 143.2 160.5 177.8 195.1
total holding cost 92.6 114.2 135.8 157.4 179.0 200.6 222.2 243.8
total ordering cost 666.7 540.5 454.5 392.2 344.8 307.7 277.8 253.2
total variable cost 833.3 746.1 699.0 675.5 667.0 668.8 677.8 692.1
 Costs

220 255 290 325 360 395 430 465 500 535

ages cost tota l hol di ng cost total ordering cost total vari abl e cost

430 465 500 535

191.1 206.7 222.2 237.8
212.3 229.6 246.9 264.2
265.4 287.0 308.6 330.2
232.6 215.1 200.0 186.9
710.3 731.7 755.6 781.4
EOQ with shortages
formula solver
4500.00
demand rate () 12000 12000
4000.00
ordering cost per order (A) 400 400
inventory carrying charge (I) 0.225 0.225 3500.00
unit cost ( C) 8 8 3000.00
shortages cost per unit () 20 20 2500.00
producton rate () 24000 24000
2000.00
quantty (Q) 3409.79 3409.79
1500.00
Max. inventory level (Mi) 1564.12 1564.12
Max. shortages level (Ms) 140.77 140.77 1000.00
total shortages cost 116.23 116.23 500.00
total holding cost 1291.48 1291.48 0.00
total ordering cost 1407.71 1407.71 1500 1800 2100 2400 2700

total variable cost 2815.42 2815.42

total shortages cost total hol di ng

Table of values
Quantty 1500 1800 2100 2400 2700 3000 3300
Max. inventory level (Mi) 688.07 825.69 963.30 1100.92 1238.53 1376.15 1513.76
Max. shortages level (Ms) 61.93 74.31 86.70 99.08 111.47 123.85 136.24
total shortages cost 51.13 61.36 71.58 81.81 92.04 102.26 112.49
total holding cost 568.13 681.76 795.39 909.01 1022.64 1136.27 1249.89
total ordering cost 3200.00 2666.67 2285.71 2000.00 1777.78 1600.00 1454.55
total variable cost 3819.27 3409.79 3152.69 2990.83 2892.46 2838.53 2816.93
 Costs

1800 2100 2400 2700 3000 3300 3600 3900 4200 4500 4800

shortages cost total hol di ng cost tota l orderi ng cost total vari abl e cost

3600 3900 4200 4500 4800

1651.38 1788.99 1926.61 2064.22 2201.83
148.62 161.01 173.39 185.78 198.17
122.72 132.94 143.17 153.40 163.62
1363.52 1477.15 1590.78 1704.40 1818.03
1333.33 1230.77 1142.86 1066.67 1000.00
2819.57 2840.86 2876.80 2924.46 2981.65
 Floor area Total investment

Item 1 2 3 Item 1 2 3
Annual demand 500 400 600 Annual demand 500 400 600
Cost/unit 30 20 70 Cost/unit 30 20 70
Set-up cost 800 600 1000 Set-up cost 800 600 1000
Floor area req. 5 4 10

Inventory carrying charge 20% Inventory carrying charge 20%

Max. floor area available 4000 Max. investment available 10000

For alpha 0.839106 For alpha 1.372759

Item 1 2 3 Item 1 2 3
EOQ 235.7754 211.6743 197.4428 EOQ 95.14885 90.26613 76.2888
Set-up cost 1696.53 1133.817 3038.855 Set-up cost 4203.939 2658.805 7864.85
Holding cost 707.3263 423.3486 1382.1 Holding cost 285.4466 180.5323 534.0216

Total floor area req. 4000.002 Investment required 10000

Total variable cost 8381.976 Total variable cost 15727.59

 No. of orders Average inventory

Item 1 2 3 Item 1 2 3
Annual demand 500 400 600 Annual demand 50000 40000 60000
Cost/unit 30 20 70 Cost/unit 30 20 70
Set-up cost 12 9 10 Set-up cost 1200 900 1000

Inventory carrying charge 25% Inventory carrying charge 20%

Max. orders available 40 Max. inventory allowed 8000

For alpha 3.2695 For alpha 6.9556

Item 1 2 3 Item 1 2 3
EOQ 45.12129 44.30707 30.16467 EOQ 3043.422 2563.59 2392.989
Set-up cost 132.9749 81.25113 198.9082 Set-up cost 19714.65 14042.81 25073.24
Holding cost 169.2048 110.7677 263.9408 Holding cost 11412.83 6408.975 20938.66

No. of orders req. 39.99997 Inventory required 8000.001

Total variable cost 957.0476 Total variable cost 97591.16

 176.776695 4282.843
Data Range of units Price per unit 10
A 50 0 50 10 20
Demand 500 50 100 9.5 30
I 20% 100 8 40
50
Q3 176.7766953 60
Q2 162.2214211 70
Q1 158.113883 80
90
EOQ satisfying range Total Cost 100
176.7767 EOQ 4282.8427125 110
Per unit cost for EOQ 50 5297.5 120
8 100 4330.00 130
140
150
160

Chart Title
12

10

0
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160
Col umn H
 Stochastic demand (discrete units)

Demand (x) Probability P(x) Cumulative probability

22 0.12 0.12
23 0.08 0.2
24 0.19 0.39
25 0.01 0.4
26 0.15 0.55
27 0.05 0.6
28 0.37 0.97
29 0.03 1
1

Carrying charge (Ic) 15

Shortages cost (pi) 20

Factor 0.5714285714
Optimal Q (Q*) 27