Inventory/ABC Analysis

Enter the unit costs and the unit volumes into the shaded data area. NOTE:
The dollar volume in column F (but not in column L) is adjusted to prevent ties.
Data Results - sorted by dollar volume

Dollar Percent of Dollar

Volume Dollar Dollar Volume
Rank Item Volume Unit Cost volume Volume Rank Item
1 1289 420 3.25 $ 1,365 42.34% 1 1289
2 2347 300 4 $ 1,200 37.22% 2 2347
3 2349 120 2.5 $ 300 09.30% 3 2349
5 2363 65 1.3 $ 85 02.62% 4 2394
4 2394 60 1.75 $ 105 03.26% 5 2363
6 2395 35 2 $ 70 02.17% 6 2395
8 6782 20 1.15 $ 23 00.71% 7 7844
7 7844 12 2.05 $ 25 00.76% 8 6782
9 8210 10 2 $ 20 00.62% 9 8210
11 8310 7 2 $ 14 00.43% 10 9111
10 9111 6 3 $ 18 00.56% 11 8310
 Percent of dollar volume accounted for by A items 75.00%
Percent of dollar volume accounted for by B items 15.00% 90.00%
orted by dollar volume

Cum
Percent of Percent of
Dollar Dollar Dollar
Volume Unit Cost Volume Volume Volume Category
420 3.25 $ 1,365.00 42.34% 42.34% A
300 4 $ 1,200.00 37.22% 79.56% A
120 2.5 $ 300.00 09.30% 88.86% B
60 1.75 $ 105.00 03.26% 92.12% B
65 1.3 $ 84.50 02.62% 94.74% C
35 2 $ 70.00 02.17% 96.91% C
12 2.05 $ 24.60 00.76% 97.67% C
20 1.15 $ 23.00 00.71% 98.39% C
10 2 $ 20.00 00.62% 99.01% C
6 3 $ 18.00 00.56% 99.57% C
7 2 $ 14.00 00.43% 100.00% C
Total $ 3,224.10
Inventory Economic Order Quantity Model
Enter
Enter the
the data
data in
in the
the shaded
shaded area.
area.

Order Quantity Data

Annual Demand Rate, D 14800
Setup/Ordering Cost, S 77
Holding/Carrying Cost per Unit per Year, H $ 26.00 (fixed amount)
Unit price, P

Reorder Point Data (optional)

Days per year or ... 300
...Daily demand rate, d 49.3333333333333
Lead time in days, L 2
Safety stock, ss
Reorder Point, dL+ss 99

Results
Optimum Order Quantity, Q* (EOQ) 296.08
Maximum Inventory, Q* 296.08
Average Inventory, Q*/2 148.04
Number of Orders, D/Q* 49.99

Annual Holding Cost, HQ*/2 $3,849.00

Annual Order Cost, DS/Q* $3,849.00

Annual Unit Costs, PD $0.00

Total Annual Cost, Tc $7,698.00

Cost Table (Sensitivity) Start graph at 74.0192282711 Increment 24.673076

Setup/Order Holding
Order Quantity, Q cost cost Total cost
74.02 15396.00 962.25 16358.25
98.69 11547.00 1283.00 12830.00
123.37 9237.60 1603.75 10841.35
148.04 7698.00 1924.50 9622.50
172.71 6598.29 2245.25 8843.54
197.38 5773.50 2566.00 8339.50
222.06 5132.00 2886.75 8018.75
246.73 4618.80 3207.50 7826.30
271.40 4198.91 3528.25 7727.16
296.08 3849.00 3849.00 7698.00
320.75 3552.92 4169.75 7722.67
345.42 3299.14 4490.50 7789.64
370.10 3079.20 4811.25 7890.45
394.77 2886.75 5132.00 8018.75
419.44 2716.94 5452.75 8169.69
444.12 2566.00 5773.50 8339.50
468.79 2430.95 6094.25 8525.20
493.46 2309.40 6415.00 8724.40
518.13 2199.43 6735.75 8935.18
542.81 2099.45 7056.50 9155.95
567.48 2008.17 7377.25 9385.42
592.15 1924.50 7698.00 9622.50
616.83 1847.52 8018.75 9866.27
641.50 1776.46 8339.50 10115.96

296.08 0.00
296.08 7698.00
Inventory Economic Order Quantity Model
Enter
Enter the
the data
data in
in the
the shaded
shaded area.
area.

Order Quantity Data

Annual Demand Rate, D 5800
Setup/Ordering Cost, S 31
Holding/Carrying Cost per Unit per Year, H $ 11.00 (fixed amount)
Unit price, P 103

Reorder Point Data (optional)

Days per year or ... 250
...Daily demand rate, d 23.2
Lead time in days, L 5
Safety stock, ss
Reorder Point, dL+ss 116

Results
Optimum Order Quantity, Q* (EOQ) 180.81
Maximum Inventory, Q* 180.81
Average Inventory, Q*/2 90.40 days between orders
Number of Orders, D/Q* 32.08 7.793

Annual Holding Cost, HQ*/2 $994.43 Note: question f: is actually asking for t
Annual Order Cost, DS/Q* $994.43

Annual Unit Costs, PD $597,400.00

Total Annual Cost, Tc $599,388.87

Cost Table (Sensitivity) Start graph at 45.201568758 Increment 15.06719

Setup/Order Holding
Order Quantity, Q cost cost Total cost
45.20 3977.74 248.61 4226.35
60.27 2983.30 331.48 3314.78
75.34 2386.64 414.35 2800.99
90.40 1988.87 497.22 2486.09
105.47 1704.74 580.09 2284.83
120.54 1491.65 662.96 2154.61
135.60 1325.91 745.83 2071.74
150.67 1193.32 828.70 2022.02
165.74 1084.84 911.56 1996.40
180.81 994.43 994.43 1988.87
195.87 917.94 1077.30 1995.24
210.94 852.37 1160.17 2012.55
226.01 795.55 1243.04 2038.59
241.08 745.83 1325.91 2071.74
256.14 701.95 1408.78 2110.74
271.21 662.96 1491.65 2154.61
286.28 628.06 1574.52 2202.59
301.34 596.66 1657.39 2254.05
316.41 568.25 1740.26 2308.51
331.48 542.42 1823.13 2365.55
346.55 518.84 1906.00 2424.83
361.61 497.22 1988.87 2486.09
376.68 477.33 2071.74 2549.07
391.75 458.97 2154.61 2613.58

180.81 0.00
180.81 1988.87
tion f: is actually asking for the Total Cost which includes ordering, inventory and product costs
Inventory Economic Order Quantity Model
Enter
Enter the
the data
data in
in the
the shaded
shaded area.
area.

Order Quantity Data

Annual Demand Rate, D 2510
Setup/Ordering Cost, S 18.5
Holding/Carrying Cost per Unit per Year, H $ 1.45 (fixed amount)
Unit price, P

Reorder Point Data (optional)

Days per year or ... 250
...Daily demand rate, d 10.04
Lead time in days, L 2
Safety stock, ss
Reorder Point, dL+ss 20.08

Results
Optimum Order Quantity, Q* (EOQ) 253.08 a
Maximum Inventory, Q* 253.08
Average Inventory, Q*/2 126.54 Days btw ordersb
Number of Orders, D/Q* 9.92 25.21 e

Annual Holding Cost, HQ*/2 $183.48 c

Annual Order Cost, DS/Q* $183.48 b
20.08 f
Annual Unit Costs, PD $0.00
Total Annual Cost, Tc $366.96 d

Cost Table (Sensitivity) Start graph at 63.2694020944 Increment 21.089801

Setup/Order Holding
Order Quantity, Q cost cost Total cost
63.27 733.93 45.87 779.80
84.36 550.44 61.16 611.60
105.45 440.36 76.45 516.81
126.54 366.96 91.74 458.70
147.63 314.54 107.03 421.57
168.72 275.22 122.32 397.54
189.81 244.64 137.61 382.25
210.90 220.18 152.90 373.08
231.99 200.16 168.19 368.35
253.08 183.48 183.48 366.96
274.17 169.37 198.77 368.14
295.26 157.27 214.06 371.33
316.35 146.79 229.35 376.14
337.44 137.61 244.64 382.25
358.53 129.52 259.93 389.45
379.62 122.32 275.22 397.54
400.71 115.88 290.51 406.39
421.80 110.09 305.80 415.89
442.89 104.85 321.09 425.94
463.98 100.08 336.38 436.46
485.07 95.73 351.67 447.40
506.16 91.74 366.96 458.70
527.25 88.07 382.25 470.32
548.33 84.68 397.54 482.23

253.08 0.00
253.08 366.96
Inventory Production
Enter the data in the shaded area. You may Order Quantity Model
have to
Enter thedodata
some work
in the to enter
shaded the daily
area.
production rate.

Data
Demand rate, D 11800
Ordering/setup cost, S 50.98
Holding/carrying cost, H 0.15 (fixed amount)
Daily production rate, p 100
Days per year or ... 300
... Daily demand rate, d 39.333333 Enter the days per year in the data area in the row above o
Unit price, P 1

Results
Optimal production quantity, Q* 3636 a
Maximum Inventory Level 2206
Average Inventory 1103
Number of Setups 3

Holding cost $ 165.44 b

Setup cost $ 165.44 b

Unit costs $ 11,800.00

Total cost, Tc $ 12,130.88 c

Cost Table (Sensitivity) Start graph at 909.02375 Increment 303.00792

Production Order Setup/ Holding

Quantity, Q Order cost cost Total cost
909.02 661.77 41.36 703.13
1212.03 496.33 55.15 551.47
1515.04 397.06 68.93 466.00
1818.05 330.88 82.72 413.61
2121.06 283.62 96.51 380.12
2424.06 248.16 110.29 358.46
2727.07 220.59 124.08 344.67
3030.08 198.53 137.87 336.40
3333.09 180.48 151.66 332.14
3636.09 165.44 165.44 330.88
3939.10 152.72 179.23 331.95
4242.11 141.81 193.02 334.82
4545.12 132.35 206.80 339.16
4848.13 124.08 220.59 344.67
5151.13 116.78 234.38 351.16
5454.14 110.29 248.16 358.46
5757.15 104.49 261.95 366.44
6060.16 99.27 275.74 375.00
6363.17 94.54 289.52 384.06
6666.17 90.24 303.31 393.55
6969.18 86.32 317.10 403.42
7272.19 82.72 330.88 413.61
7575.20 79.41 344.67 424.08
7878.21 76.36 358.46 434.82

3636.09 0.00
3636.09 330.88
a area in the row above or enter the daily demand rate in this row
Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 35900
Order cost, S 24
Holding cost, H 0.43 (fixed amount)

Range 1 Range 2
Minimum quantity 1 6100
Unit Price, P 0.86 0.81

Results
Range 1 Range 2
Q* (Square root formula) 2001.85960059 2001.85960059
Order Quantity 2001.85960059 6100

Holding cost $430.40 $1,311.50

Order cost $430.40 $141.25

Unit costs $30,874.00 $29,079.00

Total cost, Tc $31,734.80 $30,531.75

Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 4800
Order cost, S 122
Holding cost %, I 10.00% (percentage)

Range 1 Range 2 Range 3

Minimum quantity 1 100 200
Unit Price, P 350 325 300

Results
Range 1 Range 2 Range 3
Q* (Square root formula) 182.928557483 189.833935525 197.5854245637
Order Quantity NA 189.833935525 200

Holding cost NA $3,084.80 $3,000.00

Order cost NA $3,084.80 $2,928.00

Unit costs NA $1,560,000.00 $1,440,000.00

Total cost, Tc NA $1,566,169.60 $1,445,928.00

Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 2400
Order cost, S 10
Holding cost, H 3.33 (fixed amount)

Range 1 Range 2 Range 3 Range 4 Range 5

Minimum quantity 1 50 15 75 150
Unit Price, P 35 34.75 33.55 32.35 31.15

Results
Range 1 Range 2 Range 3 Range 4 Range 5
Q* (Square root formula) 120.060045038 120.060045038 120.060045038 120.060045038 120.060045038
Order Quantity NA NA NA 120.060045038 150

Holding cost NA NA NA $199.90 $249.75

Order cost NA NA NA $199.90 $160.00

Unit costs NA NA NA $77,640.00 $74,760.00

Total cost, Tc NA NA NA $78,039.80 $75,169.75

Range 6
300
30.75

Range 6
120.060045
300

$499.50
$80.00

$73,800.00

$74,379.50
Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 1100
Order cost, S 5
Holding cost, H 7.55 (fixed amount)

Range 1 Range 2 Range 3 Range 4 Range 5

Minimum quantity 1 15 50 100 300
Unit Price, P 34.75 34 32.8 31.6 30.5

Results
Range 1 Range 2 Range 3 Range 4 Range 5
Q* (Square root formula) 38.1700621218 38.1700621218 38.1700621218 38.1700621218 38.1700621218
Order Quantity NA 38.1700621218 50 100 300

Holding cost NA $144.09 $188.75 $377.50 $1,132.50

Order cost NA $144.09 $110.00 $55.00 $18.33

Unit costs NA $37,400.00 $36,080.00 $34,760.00 $33,550.00

Total cost, Tc NA $37,688.18 $36,378.75 $35,192.50 $34,700.83

Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 1100
Order cost, S 5
Holding cost, H 7.55 (fixed amount)

Range 1 Range 2 Range 3 Range 4

Minimum quantity 1 25 75 200
Unit Price, P 34.5 33.75 32.5 31.1

Results
Range 1 Range 2 Range 3 Range 4
Q* (Square root formula) 38.1700621218 38.1700621218 38.1700621218 38.1700621218
Order Quantity NA 38.1700621218 75 200

Holding cost NA $144.09 $283.13 $755.00

Order cost NA $144.09 $73.33 $27.50

Unit costs NA $37,125.00 $35,750.00 $34,210.00

Total cost, Tc NA $37,413.18 $36,106.46 $34,992.50

Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 1100
Order cost, S 5
Holding cost, H 7.55 (fixed amount)

Range 1 Range 2 Range 3

Minimum quantity 1 75 200
Unit Price, P 34.25 33 31

Results
Range 1 Range 2 Range 3
Q* (Square root formula) 38.1700621218 38.1700621218 38.1700621218
Order Quantity 38.1700621218 75 200

Holding cost $144.09 $283.13 $755.00

Order cost $144.09 $73.33 $27.50

Unit costs $37,675.00 $36,300.00 $34,100.00

Total cost, Tc $37,963.18 $36,656.46 $34,882.50

Inventory/Quantity Discount Model
Enter the data in the shaded area. The minimum quantity is the minimum amount that needs to be
ordered in order to get the price that is in the same column.

Data
Demand rate, D 9600
Order cost, S 51
Holding cost %, I 50.00% (percentage)

Range 1 Range 2 Range 3 Range 4

Minimum quantity 1 400 800 1200
Unit Price, P 17.1 16.85 16.6 16.25

Results
Range 1 Range 2 Range 3 Range 4
Q* (Square root formula) 338.41736922 340.918640276 343.47620531 347.155473926
Order Quantity 338.41736922 400 800 1200

Holding cost $1,446.73 $1,685.00 $3,320.00 $4,875.00

Order cost $1,446.73 $1,224.00 $612.00 $408.00

Unit costs $164,160.00 $161,760.00 $159,360.00 $156,000.00

Total cost, Tc $167,053.47 $164,669.00 $163,292.00 $161,283.00

 12.27 SS

Inventory Safety stock - Normal distribution

Select a model and then enter the data in the shaded area. The model on the bottom left represents
the 3 models described in the textbook under Other Probabilistic Models

Model: Demand during leadtime and its standard deviation given Model: Daily demand and its standard deviation are given

Data Data
Average demand during lead time, µ 60 Average daily demand
Standard deviation of σdLT 6 Standard deviation of daily demand, σd
Service level (% of demand met) 95.00% Lead time days
Service level (% of demand met)

Results Results
Z-value 1.64 Z-value #VALUE!
Safety stock 10 Average demand during lead time 0
Standard deviation of demand during lead time, σdLT 0.00
Safety stock #VALUE!
Reorder Point #VALUE!

Models: Either daily demand, lead time or both are variable

Data
Average daily demand 60
Standard deviation of daily demand 6 Enter 0 if demand is constant
Average lead time (in days) 0
Standard deviation of lead time, σLT 0 Enter 0 if lead time is constant
Service level (% of demand met) 95.00%

Results
Z-value 1.64
Average demand during lead time 60
Standard deviation of demand during lead time, σdLT 6.00
Safety stock 9.87
Reorder point 69.87

741601921.xlsx
 12.32 SS

Inventory Safety stock - Normal distribution

Select a model and then enter the data in the shaded area. The model on the bottom left represents
the 3 models described in the textbook under Other Probabilistic Models

Model: Demand during leadtime and its standard deviation given Model: Daily demand and its standard deviation are given

Data Data
Average demand during lead time, µ Average daily demand 1100
Standard deviation of σdLT Standard deviation of daily demand, σd 105
Service level (% of demand met) Lead time days 3
Service level (% of demand met) 98.00%

Results Results
Z-value #VALUE! Z-value 2.05
Safety stock #VALUE! Average demand during lead time 3300
Standard deviation of demand during lead time, σdLT 181.87
Safety stock 374
Reorder Point 3674

Models: Either daily demand, lead time or both are variable

Data
Average daily demand
Standard deviation of daily demand Enter 0 if demand is constant
Average lead time (in days)
Standard deviation of lead time, σLT Enter 0 if lead time is constant
Service level (% of demand met)

Results
Z-value #VALUE!
Average demand during lead time 0
Standard deviation of demand during lead time, σdLT 0.00
Safety stock #VALUE!
Reorder point #VALUE!

741601921.xlsx
 12.33 SS

Inventory Safety stock - Normal distribution

Select a model and then enter the data in the shaded area. The model on the bottom left represents
the 3 models described in the textbook under Other Probabilistic Models

Model: Demand during leadtime and its standard deviation given Model: Daily demand and its standard deviation are given

Data Data
Average demand during lead time, µ Average daily demand
Standard deviation of σdLT Standard deviation of daily demand, σd
Service level (% of demand met) Lead time days
Service level (% of demand met)

Results Results
Z-value #VALUE! Z-value #VALUE!
Safety stock #VALUE! Average demand during lead time 0
Standard deviation of demand during lead time, σdLT 0.00
Safety stock #VALUE!
Reorder Point #VALUE!

Models: Either daily demand, lead time or both are variable

Data
Average daily demand 12600
Standard deviation of daily demand 0 Enter 0 if demand is constant
Average lead time (in days) 2
Standard deviation of lead time, σLT 1 Enter 0 if lead time is constant
Service level (% of demand met) 97.00%

Results
Z-value 1.88
Average demand during lead time 25200
Standard deviation of demand during lead time, σdLT 12600.00
Safety stock 23698.00
Reorder point 48898.00

741601921.xlsx