GIVEN

Annual Demand 13,000.00

Ordering Cost 40.00
Annual Holding Rate % 0.30
Cost per Unit 22.00
Annual Value Usage 286,000.00
Lead Time (Days) 2.00

Optimal number of orders per year 33

Optimal value per order 8733.08
Optimal number of days' supple per order 11
Optimal number of units per order 396.96
Cycle Time (Days) 7.94

a. Find the optimal order quantity 397

b. Find the optimal number orders per year 33
c. How often should an order be place? 8
d. What is the cycle time? 8

EOQ TABLE
No. Of Orders per year 1 2
Value per order 286,000.00 143,000.00
Averge Inventory 143,000.00 71,500.00
Carrying costs 42,900.00 21,450.00
Ordering cost 40.00 80.00
Total costs/year 42,940.00 21,530.00

REPORT

In order to reduce the costs associated with purchasing and maintaining inventory or reach the best perf
store. The order cycle time is every 7.94 days, while the ideal value is 8,733.08 and the ideal quantity per
store's costs decrease when there are 1 to 32 orders per year and increase when there are more than 34
 3 4 5 6 7 8
95,333.33 71,500.00 57,200.00 47,666.67 40,857.14 35,750.00
47,666.67 35,750.00 28,600.00 23,833.33 20,428.57 17,875.00
14,300.00 10,725.00 8,580.00 7,150.00 6,128.57 5,362.50
120.00 160.00 200.00 240.00 280.00 320.00
14,420.00 10,885.00 8,780.00 7,390.00 6,408.57 5,682.50

ry or reach the best performance, a minimum orders of 33 should be placed annually by customers of the supply
nd the ideal quantity per order is 396.96 or 397 approximated units. Additionally, according to the EOQ table, the
n there are more than 34 orders.
 9 10 11 12 13 14
31,777.78 28,600.00 26,000.00 23,833.33 22,000.00 20,428.57
15,888.89 14,300.00 13,000.00 11,916.67 11,000.00 10,214.29
4,766.67 4,290.00 3,900.00 3,575.00 3,300.00 3,064.29
360.00 400.00 440.00 480.00 520.00 560.00
5,126.67 4,690.00 4,340.00 4,055.00 3,820.00 3,624.29

mers of the supply

the EOQ table, the
 15 16 17 18 19 20 21
19,066.67 17,875.00 16,823.53 15,888.89 15,052.63 14,300.00 13,619.05
9,533.33 8,937.50 8,411.76 7,944.44 7,526.32 7,150.00 6,809.52
2,860.00 2,681.25 2,523.53 2,383.33 2,257.89 2,145.00 2,042.86
600.00 640.00 680.00 720.00 760.00 800.00 840.00
3,460.00 3,321.25 3,203.53 3,103.33 3,017.89 2,945.00 2,882.86
 22 23 24 25 26 27 28
13,000.00 12,434.78 11,916.67 11,440.00 11,000.00 10,592.59 10,214.29
6,500.00 6,217.39 5,958.33 5,720.00 5,500.00 5,296.30 5,107.14
1,950.00 1,865.22 1,787.50 1,716.00 1,650.00 1,588.89 1,532.14
880.00 920.00 960.00 1,000.00 1,040.00 1,080.00 1,120.00
2,830.00 2,785.22 2,747.50 2,716.00 2,690.00 2,668.89 2,652.14
 29 30 31 32 33 34 35
9,862.07 9,533.33 9,225.81 8,937.50 8,666.67 8,411.76 8,171.43
4,931.03 4,766.67 4,612.90 4,468.75 4,333.33 4,205.88 4,085.71
1,479.31 1,430.00 1,383.87 1,340.63 1,300.00 1,261.76 1,225.71
1,160.00 1,200.00 1,240.00 1,280.00 1,320.00 1,360.00 1,400.00
2,639.31 2,630.00 2,623.87 2,620.63 2,620.00 2,621.76 2,625.71
 36 37 38 39 40 41 42
7,944.44 7,729.73 7,526.32 7,333.33 7,150.00 6,975.61 6,809.52
3,972.22 3,864.86 3,763.16 3,666.67 3,575.00 3,487.80 3,404.76
1,191.67 1,159.46 1,128.95 1,100.00 1,072.50 1,046.34 1,021.43
1,440.00 1,480.00 1,520.00 1,560.00 1,600.00 1,640.00 1,680.00
2,631.67 2,639.46 2,648.95 2,660.00 2,672.50 2,686.34 2,701.43
 43 44 45 46 47 48 49
6,651.16 6,500.00 6,355.56 6,217.39 6,085.11 5,958.33 5,836.73
3,325.58 3,250.00 3,177.78 3,108.70 3,042.55 2,979.17 2,918.37
997.67 975.00 953.33 932.61 912.77 893.75 875.51
1,720.00 1,760.00 1,800.00 1,840.00 1,880.00 1,920.00 1,960.00
2,717.67 2,735.00 2,753.33 2,772.61 2,792.77 2,813.75 2,835.51
 50
5,720.00
2,860.00
858.00
2,000.00
2,858.00