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    Jai Deep
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    This document summarizes the optimal inventory synchronization policy for two products: Queens and Kings. The optimal synchronized order quantity for Queens is 501 units every 0.2280 weeks, resulting in 4.38 orders per year. The optimal synchronized order quantity for Kings is 57 units every 0.2280 weeks, also resulting in 4.38 orders per year. The total annual cost of this synchronized policy is $255,700.

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    This document summarizes the optimal inventory synchronization policy for two products: Queens and Kings. The optimal synchronized order quantity for Queens is 501 units every 0.2280 weeks, resulting in 4.38 orders per year. The optimal synchronized order quantity for Kings is 57 units every 0.2280 weeks, also resulting in 4.38 orders per year. The total annual cost of this synchronized policy is $255,700.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    22 views4 pages

    Sleapease Assignment

    Uploaded by

    Jai Deep
    This document summarizes the optimal inventory synchronization policy for two products: Queens and Kings. The optimal synchronized order quantity for Queens is 501 units every 0.2280 weeks, resulting in 4.38 orders per year. The optimal synchronized order quantity for Kings is 57 units every 0.2280 weeks, also resulting in 4.38 orders per year. The total annual cost of this synchronized policy is $255,700.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    Interest rate 10%

    Joint set up cost $650

    Product set up cost Unit storage cost Unit purchase cost


    Queens $500 $15 $100
    King $500 $15 $120

    Optimal Synchoronisation policy

    Product Order per cycleTime between ordersorders per year


    Queens 501.67718704 0.228035085019828 4.3852900965352
    King 57.008771255 0.228035085019828 4.3852900965352

    Cycle time 0.45607017


    Cycle time (weeks) 23.715648842

    Monetary values
    Annual setup cost 2850.4385627
    Annual holding cost 2850.4385627
    Annual purchasing cost 250000
    Total annual cost 255700.87713

    Optimal policy with no synchoronization


    Separate EOQ Time between ordersOrders per year
    Product
    Queens 296.64793948 0.134839972492648 7.4161984870957
    King 96.225044865 0.38490017945975 2.5980762113533
    combined holding cost annual demand
    $25 2,200
    $27 250

    synchoronised quantity Ordering frequency


    501.677187043621 4.38529009653515
    57.0087712549569

    Annual setup cost Annual holding cost

    3708.09924354783 3708.09924354783
    1299.03810567666 1299.03810567666
    Interest rate 10%
    Joint set up cost $650

    Product set up cost Unit storage cost Unit purchase cost


    Queens $500 $15 $100
    King $500 $15 $120

    Optimal Synchoronisation policy

    Product Order per cycleTime between ordersorders per year


    Queens 3 0.001363636363636 733.33333333333
    King 1 0.004 250

    Cycle time 0.0053636364

    Monetary values
    Annual setup cost 2850.4385627
    Annual holding cost 2850.4385627
    Annual purchasing cost 250000
    Total annual cost 255700.87713

    Optimal policy with no synchoronization


    Separate EOQ Time between ordersOrders per year
    Product
    Queens 297 0.135 7.4074074074074
    King 96 0.384 2.6041666666667

    Total Cost 260014.28704


    combined holding cost annual demand
    $25 2,200
    $27 250

    synchoronised quantity Ordering frequency


    3 4.38529009653515
    1

    Annual setup cost Annual holding cost

    3703.7037037037 3712.5
    1302.08333333333 1296

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