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Caase Study
Caase Study
Item 4 829 678.26 672.75 2,565.97 3,916.98 Item 4 829 550.59 552.50 1,710.65 2,813.74
11,102.7 13,964.6
Item 5 301 1,436.84 1,425.00 6 0 Item 5 301 1,161.70 1,175.00 7,401.84 9,738.54
12,297.4
Item 6 447 1,468.24 1,453.50 9,375.67 0 Item 6 447 1,188.57 1,197.00 6,250.44 8,636.02
Item 7 799 624.00 600.00 2,960.74 4,184.74 Item 7 799 499.20 500.00 1,973.82 2,973.02
Item 8 597 334.29 336.00 976.99 1,647.28 Item 8 597 275.29 272.00 651.33 1,198.62
Item 9 27 445.71 441.00 5,181.29 6,068.00 Item 9 27 367.06 357.00 3,454.19 4,178.25
Item 10 196 405.19 404.25 1,036.26 1,845.70 Item 10 196 331.91 329.00 690.84 1,351.75
14,186.8 17,321.8
Item 11 258 1,560.00 1,575.00 6 6 Item 11 258 1,284.71 1,275.00 9,457.91 12,017.61
Item 12 62 580.17 580.80 2,763.35 3,924.32 Item 12 62 474.32 473.60 1,842.24 2,790.16
Total number of items 12
Jacksons Warehouse
AGGREGATE INVENTORY VALUES
Average working stock investment $46,93100
Inventory carrying charge = 30%
$435,736.
Service level = 95%
Average safety stock investment 70
$482,667.
Total inventory investment 70
$14,243.5
Cost of ordering EOQ items per year 9
$14,079.3
Average working stock carrying cost per year 0
$130,721.
Average safety stock carrying cost per year 00
$144,800.
Total inventory carrying cost per year 30
$159,043.
Total cost per year 90
Expected stockouts 17
Total number of items 12
Jacksons Warehouse
AGGREGATE INVENTORY VALUES
Average working stock investment $57,785.50 Inventory carrying charge = 20%
Average safety stock investment $435,736.70 Service level = 95%
Total inventory investment $493,522.20
Expected stockouts 14
Question 6:
Disregard your answers to questions 4 and 5.
Answer question 3 again, this time assuming
that Jacksons wants to keep enough of each SKU
to fill orders 90% of the time.
Working stock Safety stock
Item name Item ID Order cost ($) cost ($) cost ($) Total cost ($)
Item 1 402 1,950.00 1,800.00 32,622.98 36,372.98
Item 2 940 2888.89 2916.00 13,840.76 19,645.65
Item 3 660 1,872.00 1,875.00 16,311.49 20,058.49
Item 4 829 678.26 672.75 1,999.22 3,350.23
Item 5 301 1,436.84 1,425.00 8,650.47 11,512.32
Item 6 447 1,468.24 1,453.50 7,304.84 10,226.58
Item 7 799 624.00 600.00 2,306.79 3,530.79
Item 8 597 334.29 336.00 761.20 1,431.49
Item 9 27 445.71 441.00 4,036.89 4,923.60
Item 10 196 405.19 404.25 807.38 1,616.82
Item 11 258 1,560.00 1,575.00 11,053.38 14,188.38
Item 12 62 580.17 580.80 2,153.01 3,313.97
Total number of items 12
Jacksons Warehouse
AGGREGATE INVENTORY VALUES
Average working stock investment $46,931.00
Inventory carrying charge = 30%
Service level = 90% Average safety stock investment $339,494.70
Total inventory investment $386,425.70
Expected stockouts 34