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Assignment 2

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4 views

Assignment 2

Uploaded by

sahancrucial
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Total Purchasing Cost

Order size(Q) Monthly Usage Flow rate(Annual) Unit Price

School Board 1500 500 6000 60


A
School Board 400 200 2400 60
B
School Board 300 300 3600 60
C
School Board 1600 400 4800 60
D
School Board 900 600 7200 60
E
School Board 300 100 1200 60
F
School Board 200 200 2400 60
G

Economic Order Quantity

Fixed cost per Unit holding


Annual Flow rate EOQ
order cost/yr

School Board 1000 6000 2 2449.5


A
School Board 800 2400 2 1385.6
B
School Board 900 3600 2 1800.0
C
School Board 1000 4800 2 2190.9
D
School Board 1200 7200 2 2939.4
E
School Board 400 1200 2 692.8
F
School Board 1000 2400 2 1549.2
G
13007.4

Economic Order Quantity


Fixed cost per Unit holding Unit Holding
Annual Flow rate
order cost/yr cost/yr

Head Office 1000 27600 2 2

1 Week Lead Time

Centralised-EOQ

Lead Time Time Between


Throughput Reorder Point(L*R)
(weeks) Orders(EOQ/R)
1 531 531 2.425
Fixed cost per Order Annual order
Holding unit cost Total Annual cost
order(S) Frequency cost(S*R/Q)

2 1000 365,500 4.0 4000

2 800 149,200 6.0 4800

2 900 227,100 12.0 10800

2 1000 292,600 3.0 3000

2 1200 442,500 8.0 9600

2 400 73,900 4.0 1600

2 1000 156,200 12.0 12000

6,300 1,707,000 49.0 45800

Order
Order
Total Holding Cost Total Annual Cost Frequency(A
Frequency(Theoritical)
ctual)

4899.0 364,899 2.4 3.0

2771.3 146,771 4.3 5.0

3600.0 219,600 3.3 4.0

4381.8 292,382 2.7 3.0

5878.8 437,879 2.0 3.0

1385.6 73,386 8.7 9.0

3098.4 147,098 3.9 4.0

26014.8 1,682,015 0 31.0


Order
Order Total
EOQ Total Holding Cost Total Annual Cost Frequency(T
Frequency(Actual) Annual Cost
heoritical)

1286.9 2573.7 1,678,734 4.7 5.0 1,678,734

Throughput(Annual Re-Order
Lead Time
Flow Rate/52) Point

School Board A 1 115 115

School Board B 1 46 46
School Board C 1 69 69
School Board D 1 92 92
School Board E 1 138 138
School Board F 1 23 23
School Board G 1 46 46
531 531
Fixed Cost per
Unit

0.667

2.000

3.000

0.625

1.333

1.333

5.000

13.958

Fixed cost per


unit

0.408

0.577

0.500

0.456

0.408

0.577

0.645
Order size(Q)

1500
400
300
1600
900
300
200

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