Exercise
A retailing firm sells a single product at a price of €5. Its annual turnover is €160,000. It buys its stock from a wh
processing. The cost of holding one unit of stock is €2 a year and every time it reorders stock it incurs a fixed cos
Using the EOQ model calculate the following :
A)
B)
C)
D)
E)
Part B
The firm in question one buys its stock at €4 a unit, making €1 gross profit on each item sold. Its supplier offers i
provided that it buys at least 1,000 units at a time.
Is it worth taking the discount and, if it is, how much money does the firm save?
Part C
The leadtime of the supplier to deliver the goods is 2 weeks. The standard deviation of demand is 200 items / wee
What would be the safety stock if the service level is : 50%, 80%, 90%, 95%, 99% en 99,9%. Determine the reor
INPUT symbol
Verkoopprijs
Omzet
Holding cost H
Ordering cost S
Cost price c
OUTPUT
jaarlijkse vraag D
Optimale ordering quantiQ,EQQ,Q*,Qopt
Q,EQQ,Q*,Qopt
Gemiddelde stock Q/2
Aantal orders D/Q
kost van holding stock Q/2*H
kost van bestellen S*D/Q
kost van procurement Dc
kost van inventory som van laatste 3
Q Q/2*H
,ordering hoeveelheid holding kost
100 100
200 200
300 300
400 400
500 500
600 600
700 700
800 800
900 900
1000 1000
1100 1100
1200 1200
1300 1300
1400 1400
1500 1500
Part B
The firm in question one buys its stock at €4 a unit, making €1 gross profit on each item sold. Its supplier offers i
provided that it buys at least 1,000 units at a time.
Is it worth taking the discount and, if it is, how much money does the firm save?
INPUT symbol
Verkoopprijs
Omzet
Holding cost H
Ordering cost S
Cost price c
OUTPUT
jaarlijkse vraag D
Optimale ordering quantiQ,EQQ,Q*,Qopt
Q,EQQ,Q*,Qopt
Gemiddelde stock Q/2
Aantal orders D/Q
kost van holding stock Q/2*H
kost van bestellen S*D/Q
kost van procurement Dc
kost van inventory som van laatste 3
, WE zeggen ja tgen de leveracier
Part C
The leadtime of the supplier to deliver the goods is 2 weeks. The standard deviation of demand is 200 items / wee
What would be the safety stock if the service level is : 50%, 80%, 90%, 95%, 99% en 99,9%. Determine the reor
INPUT
lead time L
Standaard deviatie griekse letter s
Service levels SL
OUTPUT
wekelijkse vraag d
Service levels Z-waarde
50% 0
80% 0.841621233572915
90% 1.2815515655446
95% 1.64485362695147
99.00% 2.32634787404084
99.90% 3.09023230616781
A retailing firm sells a single product at a price of €5. Its annual turnover is €160,000. It buys its stock from a wh
processing. The cost of holding one unit of stock is €2 a year and every time it reorders stock it incurs a fixed cos
Using the EOQ model calculate the following :
A)
B)
C)
D)
E)
Part B
The firm in question one buys its stock at €4 a unit, making €1 gross profit on each item sold. Its supplier offers i
provided that it buys at least 1,000 units at a time.
Is it worth taking the discount and, if it is, how much money does the firm save?
Part C
The leadtime of the supplier to deliver the goods is 2 weeks. The standard deviation of demand is 200 items / wee
What would be the safety stock if the service level is : 50%, 80%, 90%, 95%, 99% en 99,9%. Determine the reor
INPUT symbol
Verkoopprijs
Omzet
Holding cost H
Ordering cost S
Cost price c
OUTPUT
jaarlijkse vraag D
Optimale ordering quantiQ,EQQ,Q*,Qopt
Q,EQQ,Q*,Qopt
Gemiddelde stock Q/2
Aantal orders D/Q
kost van holding stock Q/2*H
kost van bestellen S*D/Q
kost van procurement Dc
kost van inventory som van laatste 3
Q Q/2*H
,ordering hoeveelheid holding kost
100 100
200 200
300 300
400 400
500 500
600 600
700 700
800 800
900 900
1000 1000
1100 1100
1200 1200
1300 1300
1400 1400
1500 1500
Part B
The firm in question one buys its stock at €4 a unit, making €1 gross profit on each item sold. Its supplier offers i
provided that it buys at least 1,000 units at a time.
Is it worth taking the discount and, if it is, how much money does the firm save?
INPUT symbol
Verkoopprijs
Omzet
Holding cost H
Ordering cost S
Cost price c
OUTPUT
jaarlijkse vraag D
Optimale ordering quantiQ,EQQ,Q*,Qopt
Q,EQQ,Q*,Qopt
Gemiddelde stock Q/2
Aantal orders D/Q
kost van holding stock Q/2*H
kost van bestellen S*D/Q
kost van procurement Dc
kost van inventory som van laatste 3
, WE zeggen ja tgen de leveracier
Part C
The leadtime of the supplier to deliver the goods is 2 weeks. The standard deviation of demand is 200 items / wee
What would be the safety stock if the service level is : 50%, 80%, 90%, 95%, 99% en 99,9%. Determine the reor
INPUT
lead time L
Standaard deviatie griekse letter s
Service levels SL
OUTPUT
wekelijkse vraag d
Service levels Z-waarde
50% 0
80% 0.841621233572915
90% 1.2815515655446
95% 1.64485362695147
99.00% 2.32634787404084
99.90% 3.09023230616781
