Inventory Example

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Bike Co

Weekly demand
standard deviation
ROP
Q
leadtime
DL
Sigma dl

What is the average inventory in this policy?

What is the average flow time?

What it is the expected cycle service level ?

What is the expected item fill rate ?

What should be the reorder point if the cycle service level requested is 98 %?

What should be the reorder point if the desired fill rate is 98 %?


2500
500
6000
10000
2
5000
707.106781186548
aveage cycle stock
5000

2.4

normdist(ROP,DL,Sigmadl,1)
Expeected shotage
_ss * (1- NORMDIST(ss/sigmadl,0,1,1))+sigmadl *NORMDIST(ss/sigmadl,0,1,0)
K Factor (how may standard deviations should I walk to cover 98% of my demand)
2.05374891063182
service level
0.98
aveage saftey stock average inventory
1000 6000

that on average every bike stays in the waehouse for 2.4 weeks
cycle service level
92%
Expected shotage item fill rate
25.1272708300061 0.9974872729
SS ROP/s/Min
1452.21978156225 6452.2197816
sigmadl ss Expected shortage planned expected shortage
707.106781186548 182.97357626 200.000000533535 200
New ROP 5182.97357626195
ed shortage

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