Inventory: Cos t vs

Quantity
Orde r Qu antity (Q)

Order cost H oldi ng cost

Total co st
Sumco Pump Company
Inventory EOQ Model
Enter
Enter the
the input
input data
data in
in the
the cells
cells shaded
shaded YELLOW.
YELLOW.

Input Data
Demand rate, D 1000
Ordering cost, Co $10.00
Carrying cost, Ch $0.50 (fixed amount)
Unit purchase cost, P $5.00
Daly demand rate, d 4
Lead time (in days), L 3

Results
Economic order quantity, Q* 200.00
Maximum inventory 200.00
Average inventory 100.00
Number of orders 5.00

Total holding cost $50.00

Total ordering cost $50.00
Total purchase cost $5,000.00
Total cost $5,100.00

Reorder point, ROP 12

Sumco Pump Company
Inventory EOQ Model
Enter
Enter the
the input
input data
data in
in the
the cells
cells shaded
shaded YELLOW.
YELLOW.

Input Data
Demand rate, D 1000
Ordering cost, Co $10.00
Carrying cost, Ch $0.50 (fixed amount)
Unit purchase cost, P $5.00

Results
Economic order quantity, Q* 200.00
Maximum inventory 200.00
Average inventory 100.00
Number of orders 5.00

Total holding cost $50.00

Total ordering cost $50.00
Total purchase cost $5,000.00
Total cost $5,100.00

Cost Table for Graph Start at 50.000 Increment by 16.667

Q Order cost Holding cost Total cost

50.00 200.00 12.50 212.50
66.67 150.00 16.67 166.67
83.33 120.00 20.83 140.83
100.00 100.00 25.00 125.00
116.67 85.71 29.17 114.88
133.33 75.00 33.33 108.33
150.00 66.67 37.50 104.17
166.67 60.00 41.67 101.67
183.33 54.55 45.83 100.38
200.00 50.00 50.00 100.00
216.67 46.15 54.17 100.32
233.33 42.86 58.33 101.19
250.00 40.00 62.50 102.50
266.67 37.50 66.67 104.17
283.33 35.29 70.83 106.13
300.00 33.33 75.00 108.33
316.67 31.58 79.17 110.75
333.33 30.00 83.33 113.33
350.00 28.57 87.50 116.07
366.67 27.27 91.67 118.94
383.33 26.09 95.83 121.92
400.00 25.00 100.00 125.00
416.67 24.00 104.17 128.17
433.33 23.08 108.33 131.41
Inventory: Cos t vs
Quantity
Produ ction Quan tity (Q)

Setup co st Holdi ng cost

Total cost
Brown Manufacturing
Inventory Economic Production Quantity Model
Enter
Enter the
the data
data in
in the
the cells
cells shaded
shaded YELLOW.
YELLOW. You
You may
may have
have to
to do
do some
some work
work
to
to compute
compute the
the daily
daily production
production and
and demand
demand rates.
rates.

Input Data
Demand rate, D 10000
Setup cost, Cs $100.00
Carrying cost, Ch $0.50 (fixed amount)
Daily production rate, p 80
Daily demand rate, d 60
Unit purchase cost, P $5.00

Results
Economic production quantity, Q* 4000.00
Maximum inventory 1000.00
Average inventory 500.00
Number of setups 2.50

Total holding cost $250.00

Total setup cost $250.00
Total production cost $50,000.00
Total cost, TC $50,500.00

Cost Table for Graph Start at 1000.00 Increment by 333.33

Q Setup cost Holding cost Total cost

1000.00 1000.00 62.50 1062.50
1333.33 750.00 83.33 833.33
1666.67 600.00 104.17 704.17
2000.00 500.00 125.00 625.00
2333.33 428.57 145.83 574.40
2666.67 375.00 166.67 541.67
3000.00 333.33 187.50 520.83
3333.33 300.00 208.33 508.33
3666.67 272.73 229.17 501.89
4000.00 250.00 250.00 500.00
4333.33 230.77 270.83 501.60
4666.67 214.29 291.67 505.95
5000.00 200.00 312.50 512.50
5333.33 187.50 333.33 520.83
5666.67 176.47 354.17 530.64
6000.00 166.67 375.00 541.67
6333.33 157.89 395.83 553.73
6666.67 150.00 416.67 566.67
7000.00 142.86 437.50 580.36
7333.33 136.36 458.33 594.70
7666.67 130.43 479.17 609.60
8000.00 125.00 500.00 625.00
8333.33 120.00 520.83 640.83
8666.67 115.38 541.67 657.05
Inventory: Cost vs
Quantity
Pro ducti on Quanti ty (Q)

Setu p cost Ho lding cost

Total co st
Flemming Accessories
Inventory Economic Production Quantity Model
Enter
Enter the
the data
data in
in the
the cells
cells shaded
shaded YELLOW.
YELLOW. You
You may
may have
have to
to do
do some
some work
work
to
to compute
compute the
the daily
daily production
production and
and demand
demand rates.
rates.

Input Data
Demand rate, D 6750
Setup cost, Cs $150.00
Carrying cost, Ch $1.00 (fixed amount)
Daily production rate, p 125
Daily demand rate, d 30
Unit purchase cost, P $10.00

Results
Economic production quantity, Q* 1632.32
Maximum inventory 1240.56
Average inventory 620.28
Number of setups 4.14

Total holding cost $620.28

Total setup cost $620.28
Total production cost $67,500.00
Total cost, TC $68,740.56

Cost Table for Graph Start at 408.08 Increment by 136.03

Q Setup cost Holding cost Total cost

408.08 2481.13 155.07 2636.20
544.11 1860.85 206.76 2067.61
680.13 1488.68 258.45 1747.13
816.16 1240.56 310.14 1550.71
952.19 1063.34 361.83 1425.17
1088.21 930.42 413.52 1343.94
1224.24 827.04 465.21 1292.25
1360.27 744.34 516.90 1261.24
1496.29 676.67 568.59 1245.26
1632.32 620.28 620.28 1240.56
1768.35 572.57 671.97 1244.54
1904.38 531.67 723.66 1255.33
2040.40 496.23 775.35 1271.58
2176.43 465.21 827.04 1292.25
2312.46 437.85 878.73 1316.58
2448.48 413.52 930.42 1343.94
2584.51 391.76 982.11 1373.87
2720.54 372.17 1033.80 1405.97
2856.56 354.45 1085.49 1439.94
2992.59 338.34 1137.18 1475.52
3128.62 323.63 1188.87 1512.50
3264.64 310.14 1240.56 1550.71
3400.67 297.74 1292.25 1589.99
3536.70 286.28 1343.94 1630.23