Notation 208 L k H $ $ $ $ IA Parameter 2. Mean annual demand 3 Standard deviation of annual demand 4 Mean lead time 5 Standard deviaton of lead time 6 Inventory holding cost factor (annual) 7 Unit purchase cost B Holding cost per unit per year 9 Backordering cost per unit 10 Ordering cost per order 11 Order quantity 12 Mean demand during the lead time 13 Standard deviation of demand during the lead time 14 Type 1 service level 15 Standard normal variate 16 Safety stock 17 Expected units out of stock during the lead time 18 Type 2 service level 19 Reorder point 20 Annual Cycle Stock Holding Cost 21 Annual Safety Stock Holding Cost 22 Annual Ordering Cost 23 Annual Backordering Cost 24 Annual Total Relevant Logistics Cost 25 Value Measurement 1,356 units per year 248 units per year 009 years 004 years 22% per year per dollar average inventory 6200 per unit 1364 per unit per year 1200 per un backordered 49000 per order units units per lead time 92. 1 units per lead time The formulas ady been entered unts 38 runits per Cycle Q DL ON alpha z SS nR beta R CSHC SSHC BC G[Q,R) The formula seady been artered units per year per year per year per year per year 27 28 29 30 31 32 33 34 What is the optimal order quantity? What is the optimal safety stock level? What is the optimal fill rate (beta)? What is the total annual inventory cycle (cycle stock and safety stock) holding cost? What is the total annualrelevant logistics cost in the optimum? What is the optimal in-stock rate (alpha)? Notation 208 L k H $ $ $ $ IA Parameter 2. Mean annual demand 3 Standard deviation of annual demand 4 Mean lead time 5 Standard deviaton of lead time 6 Inventory holding cost factor (annual) 7 Unit purchase cost B Holding cost per unit per year 9 Backordering cost per unit 10 Ordering cost per order 11 Order quantity 12 Mean demand during the lead time 13 Standard deviation of demand during the lead time 14 Type 1 service level 15 Standard normal variate 16 Safety stock 17 Expected units out of stock during the lead time 18 Type 2 service level 19 Reorder point 20 Annual Cycle Stock Holding Cost 21 Annual Safety Stock Holding Cost 22 Annual Ordering Cost 23 Annual Backordering Cost 24 Annual Total Relevant Logistics Cost 25 Value Measurement 1,356 units per year 248 units per year 009 years 004 years 22% per year per dollar average inventory 6200 per unit 1364 per unit per year 1200 per un backordered 49000 per order units units per lead time 92. 1 units per lead time The formulas ady been entered unts 38 runits per Cycle Q DL ON alpha z SS nR beta R CSHC SSHC BC G[Q,R) The formula seady been artered units per year per year per year per year per year 27 28 29 30 31 32 33 34 What is the optimal order quantity? What is the optimal safety stock level? What is the optimal fill rate (beta)? What is the total annual inventory cycle (cycle stock and safety stock) holding cost? What is the total annualrelevant logistics cost in the optimum? What is the optimal in-stock rate (alpha)
