ABC

ABC INVENTORY ANALYSIS

Holding Cost Fraction:
Total Annual Purchases:
Total Annual Holding:

0.25
$1,360,314
$340,079
<Tab Right> for graph

Part
Number

Annual
Demand

995184
986370
986157
976121
950875
948253
944867
941663
935938
931089
916794
909781
907621
897682
893264
885577
882354
881072
862786
853113
851146
850506
831064
806473
806210
803714
794845
784156
775841
770717
767219
752033
750678
748361
740916
740710
726445

3,345
1,401
3,204
1,195
1,060
1,122
422
184
3,334
2,148
2,042
6
32
717
2,717
440
608
1,670
407
1,086
12
1,793
383
314
645
914
1,330
1,398
413
464
1,749
1,418
651
63
309
332
366

Unit
Purchase
Price

Annual
Purchase
Cost

Annual
Holding
Cost

Cumulative
Annual
Holding
Cost

Cumulative
Fraction
Holding
Cost

4.58
5.14
5.11
2.07
21.40
6.32
17.17
43.37
3.26
0.33
20.12
5.38
7.63
0.78
1.64
4.64
5.31
8.41
4.50
16.91
2.83
0.87
26.89
3.20
18.35
18.65
17.02
4.57
16.81
27.87
2.83
49.01
11.21
0.45
19.44
20.72
12.75

15,329
7,200
16,363
2,479
22,691
7,086
7,239
7,972
10,873
702
41,077
33
243
561
4,456
2,041
3,226
14,046
1,832
18,363
35
1,564
10,292
1,006
11,837
17,044
22,632
6,385
6,949
12,923
4,951
69,489
7,302
28
6,008
6,874
4,664

3,832
1,800
4,091
620
5,673
1,771
1,810
1,993
2,718
175
10,269
8
61
140
1,114
510
806
3,511
458
4,591
9
391
2,573
251
2,959
4,261
5,658
1,596
1,737
3,231
1,238
17,372
1,826
7
1,502
1,719
1,166

3,832
5,632
9,723
10,343
16,015
17,787
19,597
21,589
24,308
24,483
34,753
34,761
34,822
34,962
36,076
36,586
37,393
40,904
41,362
45,953
45,961
46,352
48,926
49,177
52,136
56,397
62,055
63,652
65,389
68,619
69,857
87,229
89,055
89,062
90,564
92,283
93,449

0.0113
0.0166
0.0286
0.0304
0.0471
0.0523
0.0576
0.0635
0.0715
0.0720
0.1022
0.1022
0.1024
0.1028
0.1061
0.1076
0.1100
0.1203
0.1216
0.1351
0.1351
0.1363
0.1439
0.1446
0.1533
0.1658
0.1825
0.1872
0.1923
0.2018
0.2054
0.2565
0.2619
0.2619
0.2663
0.2714
0.2748

Page 1

ABC

722845
721112
719676
688765
684127
672675
672390
659267
641639
629498
612116
601064
583562
579873
575236
561948
538283
538115
529406
513299
500232
493561
462087
462035
447332
438752
426957
422583
413708
413591
412475
402924
401497
389722
388070
377017
368694
347340
334110
329097
328441
322380
312160
309180
301770
301619
296085
294171
269326
249904
241080
236499

1,321
1,004
1,165
1,765
598
2,095
813
97
1,795
933
2,396
2,231
1,100
509
705
582
5
20
1,476
1,145
23
3,448
105
141
122
160
7,539
1,219
3,410
221
1,093
69
833
233
79
2,545
102
2,580
839
294
1,314
1,015
780
1,416
80
212
1,948
252
1,097
1,344
203
2,317

3.90
4.37
9.59
16.59
13.15
8.88
3.31
17.75
30.34
3.29
16.51
9.57
2.46
18.35
34.29
4.61
32.68
16.14
27.84
5.99
2.04
28.10
5.84
15.08
4.73
4.43
2.66
9.18
13.10
1.51
0.01
7.72
1.24
2.53
25.10
3.22
5.46
9.34
2.52
2.10
4.14
8.30
22.50
5.79
4.90
1.38
16.68
13.35
3.44
15.40
1.25
9.77

5,153
4,386
11,173
29,273
7,855
18,597
2,691
1,729
54,458
3,066
39,551
21,359
2,708
9,349
24,187
2,683
154
324
41,097
6,864
46
96,868
612
2,132
580
709
20,088
11,190
44,684
333
6
535
1,029
590
1,976
8,195
559
24,088
2,118
618
5,443
8,418
17,540
8,204
390
293
32,485
3,369
3,770
20,689
254
22,629

Page 2

1,288
1,096
2,793
7,318
1,964
4,649
673
432
13,615
766
9,888
5,340
677
2,337
6,047
671
38
81
10,274
1,716
12
24,217
153
533
145
177
5,022
2,797
11,171
83
2
134
257
148
494
2,049
140
6,022
530
154
1,361
2,104
4,385
2,051
98
73
8,121
842
943
5,172
64
5,657

94,737
95,833
98,626
105,945
107,909
112,558
113,231
113,663
127,278
128,044
137,932
143,271
143,948
146,286
152,332
153,003
153,042
153,123
163,397
165,113
165,124
189,341
189,494
190,028
190,173
190,350
195,372
198,169
209,340
209,424
209,425
209,559
209,816
209,964
210,458
212,506
212,646
218,668
219,198
219,352
220,713
222,817
227,202
229,253
229,351
229,424
237,545
238,388
239,330
244,503
244,566
250,223

0.2786
0.2818
0.2900
0.3115
0.3173
0.3310
0.3330
0.3342
0.3743
0.3765
0.4056
0.4213
0.4233
0.4302
0.4479
0.4499
0.4500
0.4503
0.4805
0.4855
0.4855
0.5568
0.5572
0.5588
0.5592
0.5597
0.5745
0.5827
0.6156
0.6158
0.6158
0.6162
0.6170
0.6174
0.6189
0.6249
0.6253
0.6430
0.6446
0.6450
0.6490
0.6552
0.6681
0.6741
0.6744
0.6746
0.6985
0.7010
0.7037
0.7190
0.7191
0.7358

ABC

233295
233044
226728
208182
184908
183685
183284
172375
152798
143814
139072
138175
129246
121884
119888
115102
112344
110854
110692
105916

644
2,712
516
4
18
570
363
2,095
1,899
48
1,180
4,280
150
1,706
1,022
1,483
1,607
540
5,172
239

26.13
32.01
17.30
1.44
23.71
15.16
9.89
6.27
1.62
1.31
55.18
6.12
5.10
3.71
5.97
3.92
3.96
6.59
18.84
0.95

16,841
86,801
8,917
6
420
8,639
3,595
13,135
3,073
64
65,145
26,199
765
6,332
6,098
5,822
6,358
3,556
97,428
227

Page 3

4,210
21,700
2,229
1
105
2,160
899
3,284
768
16
16,286
6,550
191
1,583
1,524
1,455
1,590
889
24,357
57

254,434
276,134
278,363
278,365
278,470
280,630
281,529
284,812
285,580
285,596
301,882
308,432
308,623
310,206
311,731
313,186
314,776
315,665
340,022
340,079

0.7482
0.8120
0.8185
0.8185
0.8188
0.8252
0.8278
0.8375
0.8397
0.8398
0.8877
0.9069
0.9075
0.9122
0.9166
0.9209
0.9256
0.9282
0.9998
1.0000

ABC

z
ABC Inventory Analysis
1.20

Cumulative Fraction

1.00
0.80
0.60
0.40
0.20
0.00
1

11

21

31

41

51

61

Item Number

Page 4

71

81

91

101

EOQ

ECONOMIC ORDER QUANTITY

Part Name :
Part Number:

Test
12345

Annual Demand:
Annual Unit Holding Cost:
Setup Cost per Order:

1,000 units / year

10.00 $ / unit / year
25.00 $ / order

EOQ:
Orders:

71 units / order
14.14 orders / year

Annual Holding Costs:

Annual Setup Costs:
Total Annual Inventory Costs:

353.55 $ / year
353.55 $ / year
$707.11 $ / year
< Page Down> for graph

EOQ Cost Trade-offs

1,600
1,400
Annual Costs

1,200
1,000

Total Costs

Holding Costs

800
600
400

Setup Costs

200
0
0

50

100

150
Order Quantity

Page 5

200

250

300

0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
0.41
0.42
0.43
0.44
0.45
0.46

EOQ

0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.70
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98

Page 6

EOQ

0.99
1.00

Page 7

EOQ

Counter
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
0.41
0.42
0.43
0.44
0.45
0.46

Quantity
18
20
23
26
28
31
34
36
39
42
44
47
49
52
55
57
60
63
65
68
71
73
76
79
81
84
87
89
92
95
97
100
103
105
108
110
113
116
118
121
124
126
129
132
134
137
140

Annual
Order
Cost
88.39
101.65
114.90
128.16
141.42
154.68
167.94
181.20
194.45
207.71
220.97
234.23
247.49
260.75
274.00
287.26
300.52
313.78
327.04
340.30
353.55
366.81
380.07
393.33
406.59
419.84
433.10
446.36
459.62
472.88
486.14
499.39
512.65
525.91
539.17
552.43
565.69
578.94
592.20
605.46
618.72
631.98
645.23
658.49
671.75
685.01
698.27

Annual
Setup
Cost
1,414.21
1,229.75
1,087.86
975.32
883.88
808.12
744.32
689.86
642.82
601.79
565.69
533.67
505.08
479.39
456.20
435.14
415.95
398.37
382.22
367.33
353.55
340.77
328.89
317.80
307.44
297.73
288.62
280.04
271.96
264.34
257.13
250.30
243.83
237.68
231.84
226.27
220.97
215.91
211.08
206.45
202.03
197.79
193.73
189.83
186.08
182.48
179.01

Total
Annual
Cost
1,502.60
1,331.40
1,202.76
1,103.48
1,025.30
962.80
912.26
871.06
837.28
809.51
786.66
767.89
752.56
740.14
730.20
722.40
716.47
712.15
709.26
707.62
707.11
707.59
708.96
711.13
714.02
717.57
721.72
726.40
731.58
737.22
743.27
749.70
756.48
763.59
771.01
778.70
786.66
794.85
803.28
811.91
820.75
829.77
838.96
848.32
857.83
867.49
877.28

Page 8

EOQ

0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.70
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98

142
145
148
150
153
156
158
161
164
166
169
171
174
177
179
182
185
187
190
193
195
198
201
203
206
209
211
214
217
219
222
225
227
230
232
235
238
240
243
246
248
251
254
256
259
262
264
267
270
272
275
278

711.53
724.78
738.04
751.30
764.56
777.82
791.08
804.33
817.59
830.85
844.11
857.37
870.63
883.88
897.14
910.40
923.66
936.92
950.17
963.43
976.69
989.95
1,003.21
1,016.47
1,029.72
1,042.98
1,056.24
1,069.50
1,082.76
1,096.02
1,109.27
1,122.53
1,135.79
1,149.05
1,162.31
1,175.57
1,188.82
1,202.08
1,215.34
1,228.60
1,241.86
1,255.11
1,268.37
1,281.63
1,294.89
1,308.15
1,321.41
1,334.66
1,347.92
1,361.18
1,374.44
1,387.70

175.68
172.47
169.37
166.38
163.49
160.71
158.01
155.41
152.89
150.45
148.09
145.80
143.57
141.42
139.33
137.30
135.33
133.42
131.55
129.74
127.98
126.27
124.60
122.98
121.39
119.85
118.34
116.88
115.45
114.05
112.69
111.36
110.06
108.79
107.54
106.33
105.15
103.99
102.85
101.74
100.66
99.59
98.55
97.53
96.53
95.55
94.60
93.66
92.74
91.83
90.95
90.08

887.20
897.25
907.41
917.68
928.05
938.52
949.09
959.74
970.48
981.30
992.19
1,003.16
1,014.20
1,025.30
1,036.47
1,047.70
1,058.99
1,070.33
1,081.73
1,093.18
1,104.67
1,116.22
1,127.81
1,139.44
1,151.12
1,162.83
1,174.58
1,186.38
1,198.20
1,210.06
1,221.96
1,233.89
1,245.85
1,257.83
1,269.85
1,281.90
1,293.97
1,306.07
1,318.19
1,330.34
1,342.51
1,354.71
1,366.92
1,379.16
1,391.42
1,403.70
1,416.00
1,428.32
1,440.66
1,453.01
1,465.39
1,477.77

Page 9

EOQ

0.99
1.00

280
283

1,400.96
1,414.21

89.22
88.39

1,490.18
1,502.60

Page 10

Discount

ECONOMIC ORDER QUANTITY with DISCOUNTS

Part Name :
Part Number:
Annual Demand:
Setup Cost per Order:
Quantity Break:
Minimum Order Quantity:
Price per Unit:
Annual Holding Cost:
EOQ:
EOQ or Min Feasible:
Annual Purchase Cost:
Annual Holding Cost:
Annual Setup Cost:
Total Inventory Cost:

Test
12345
20,000 units / year
50.00 $ / order
1
1
11.00
2.20
953
953
220,000.00
1,048.81
1,048.81
222,097.62

2
800
10.00
2.00
1000
1,000
200,000.00
1,000.00
1,000.00
202,000.00

3
1,200
9.00
1.80
1054
1,200
180,000.00
1,080.00
833.33
181,913.33

4
1,600
8.00
1.60
1118
1,600
160,000.00
1,280.00
625.00
161,905.00

units
$ / unit
$/unit/yr
units / order
units / order
$ / year
$ / year
$ / year
$ / year

Total Costs

EOQ with Quantity Discounts

240,000
238,000
236,000
234,000
232,000
230,000
228,000
226,000
224,000
222,000
220,000

Series1
Series2
Series3
Series4

500

1,000

1,500

2,000

2,500

Quantity

Page 11

3,000

3,500

0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.

Discount

0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.

Page 12

Discount

0.
1.

Page 13

Discount

units / order
units / order

Counter
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
0.41
0.42
0.43
0.44
0.45
0.46

Quantity
0
32
64
96
128
160
192
224
256
288
320
352
384
416
448
480
512
544
576
608
640
672
704
736
768
800
832
864
896
928
960
992
1,024
1,056
1,088
1,120
1,152
1,184
1,216
1,248
1,280
1,312
1,344
1,376
1,408
1,440
1,472

Annual
Setup
Cost
100,000
775
389
260
195
156
130
111
98
87
78
71
65
60
56
52
49
46
43
41
39
37
35
34
33
31
30
29
28
27
26
25
24
24
23
22
22
21
21
20
20
19
19
18
18
17
17

Annual
Order
Cost 1

Annual
Order
Cost 2

0
35
71
106
141
176
211
247
282
317
352
387
423
458
493
528
563
599
634
669
704
739
775
810
845
880
915
951
986
1,021
1,056
1,091
1,127
1,162
1,197
1,232
1,267
1,303
1,338
1,373
1,408
1,443
1,479
1,514
1,549
1,584
1,619

Page 14

0
32
64
96
128
160
192
224
256
288
320
352
384
416
448
480
512
544
576
608
640
672
704
736
768
800
832
864
896
928
960
992
1,024
1,056
1,088
1,120
1,152
1,184
1,216
1,248
1,280
1,312
1,344
1,376
1,408
1,440
1,472

Annual
Order
Cost 3
0
29
58
87
115
144
173
202
231
259
288
317
346
375
403
432
461
490
519
547
576
605
634
663
691
720
749
778
807
835
864
893
922
951
979
1,008
1,037
1,066
1,095
1,123
1,152
1,181
1,210
1,239
1,267
1,296
1,325

Annual
Order
Cost 4
0
26
51
77
103
128
154
179
205
231
256
282
307
333
359
384
410
435
461
487
512
538
563
589
615
640
666
691
717
743
768
794
819
845
871
896
922
947
973
999
1,024
1,050
1,075
1,101
1,127
1,152
1,178

Quantity
0
32
64
96
128
160
192
224
256
288
320
352
384
416
448
480
512
544
576
608
640
672
704
736
768
800
832
864
896
928
960
992
1,024
1,056
1,088
1,120
1,152
1,184
1,216
1,248
1,280
1,312
1,344
1,376
1,408
1,440
1,472

Discount

0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.70
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98

1,504
1,536
1,568
1,600
1,632
1,664
1,696
1,728
1,760
1,792
1,824
1,856
1,888
1,920
1,952
1,984
2,016
2,048
2,080
2,112
2,144
2,176
2,208
2,240
2,272
2,304
2,336
2,368
2,400
2,432
2,464
2,496
2,528
2,560
2,592
2,624
2,656
2,688
2,720
2,752
2,784
2,816
2,848
2,880
2,912
2,944
2,976
3,008
3,040
3,072
3,104
3,136

17
16
16
16
15
15
15
14
14
14
14
13
13
13
13
13
12
12
12
12
12
11
11
11
11
11
11
11
10
10
10
10
10
10
10
10
9
9
9
9
9
9
9
9
9
8
8
8
8
8
8
8

1,655
1,690
1,725
1,760
1,795
1,831
1,866
1,901
1,936
1,971
2,007
2,042
2,077
2,112
2,147
2,183
2,218
2,253
2,288
2,323
2,359
2,394
2,429
2,464
2,499
2,535
2,570
2,605
2,640
2,675
2,711
2,746
2,781
2,816
2,851
2,887
2,922
2,957
2,992
3,027
3,063
3,098
3,133
3,168
3,203
3,239
3,274
3,309
3,344
3,379
3,415
3,450

Page 15

1,504
1,536
1,568
1,600
1,632
1,664
1,696
1,728
1,760
1,792
1,824
1,856
1,888
1,920
1,952
1,984
2,016
2,048
2,080
2,112
2,144
2,176
2,208
2,240
2,272
2,304
2,336
2,368
2,400
2,432
2,464
2,496
2,528
2,560
2,592
2,624
2,656
2,688
2,720
2,752
2,784
2,816
2,848
2,880
2,912
2,944
2,976
3,008
3,040
3,072
3,104
3,136

1,354
1,383
1,411
1,440
1,469
1,498
1,527
1,555
1,584
1,613
1,642
1,671
1,699
1,728
1,757
1,786
1,815
1,843
1,872
1,901
1,930
1,959
1,987
2,016
2,045
2,074
2,103
2,131
2,160
2,189
2,218
2,247
2,275
2,304
2,333
2,362
2,391
2,419
2,448
2,477
2,506
2,535
2,563
2,592
2,621
2,650
2,679
2,707
2,736
2,765
2,794
2,823

1,203
1,229
1,255
1,280
1,306
1,331
1,357
1,383
1,408
1,434
1,459
1,485
1,511
1,536
1,562
1,587
1,613
1,639
1,664
1,690
1,715
1,741
1,767
1,792
1,818
1,843
1,869
1,895
1,920
1,946
1,971
1,997
2,023
2,048
2,074
2,099
2,125
2,151
2,176
2,202
2,227
2,253
2,279
2,304
2,330
2,355
2,381
2,407
2,432
2,458
2,483
2,509

1,504
1,536
1,568
1,600
1,632
1,664
1,696
1,728
1,760
1,792
1,824
1,856
1,888
1,920
1,952
1,984
2,016
2,048
2,080
2,112
2,144
2,176
2,208
2,240
2,272
2,304
2,336
2,368
2,400
2,432
2,464
2,496
2,528
2,560
2,592
2,624
2,656
2,688
2,720
2,752
2,784
2,816
2,848
2,880
2,912
2,944
2,976
3,008
3,040
3,072
3,104
3,136

Discount

0.99
1.00

3,168
3,200

8
8

3,485
3,520

Page 16

3,168
3,200

2,851
2,880

2,535
2,560

3,168
3,200

Discount

Total
Annual
Cost 1
#N/A
220,811
220,460
220,366
220,336
220,332
220,342
220,358
220,379
220,404
220,430
220,458
220,488
220,518
220,549
220,580
220,612
220,645
220,677
220,710
220,743
220,777
220,810
220,844
220,878
220,912
220,946
220,980
221,014
221,048
221,082
221,117
221,151
221,186
221,220
221,255
221,289
221,324
221,358
221,393
221,428
221,463
221,497
221,532
221,567
221,602
221,636

Total
Annual
Cost 2
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
221,681
221,748
221,815
221,882
221,949
222,017
222,084
222,151
222,218
222,285
222,353
222,420
222,487
222,554
222,621
222,689
222,756
222,823
222,890
222,957
223,025
223,092

Total
Annual
Cost 3
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
222,311
222,372
222,432
222,493
222,554
222,615
222,676
222,736
222,797

Total
Annual
Cost 4
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Minimum
Total
Cost
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Page 17

Discount

221,671
221,706
221,741
221,776
221,811
221,846
221,881
221,916
221,950
221,985
222,020
222,055
222,090
222,125
222,160
222,195
222,230
222,265
222,300
222,335
222,370
222,405
222,440
222,475
222,510
222,546
222,581
222,616
222,651
222,686
222,721
222,756
222,791
222,826
222,861
222,896
222,931
222,966
223,001
223,037
223,072
223,107
223,142
223,177
223,212
223,247
223,282
223,317
223,352
223,388
223,423
223,458

223,159
223,226
223,293
223,361
223,428
223,495
223,562
223,629
223,697
223,764
223,831
223,898
223,965
224,033
224,100
224,167
224,234
224,301
224,369
224,436
224,503
224,570
224,637
224,705
224,772
224,839
224,906
224,973
225,041
225,108
225,175
225,242
225,309
225,377
225,444
225,511
225,578
225,645
225,713
225,780
225,847
225,914
225,981
226,049
226,116
226,183
226,250
226,317
226,385
226,452
226,519
226,586

222,858
222,919
222,980
223,040
223,101
223,162
223,223
223,284
223,344
223,405
223,466
223,527
223,588
223,648
223,709
223,770
223,831
223,892
223,952
224,013
224,074
224,135
224,196
224,256
224,317
224,378
224,439
224,500
224,560
224,621
224,682
224,743
224,804
224,864
224,925
224,986
225,047
225,108
225,168
225,229
225,290
225,351
225,412
225,472
225,533
225,594
225,655
225,716
225,776
225,837
225,898
225,959

#N/A
#N/A
#N/A
222,720
222,775
222,829
222,884
222,938
222,992
223,047
223,101
223,156
223,210
223,264
223,319
223,373
223,428
223,482
223,536
223,591
223,645
223,700
223,754
223,808
223,863
223,917
223,972
224,026
224,080
224,135
224,189
224,244
224,298
224,352
224,407
224,461
224,516
224,570
224,624
224,679
224,733
224,788
224,842
224,896
224,951
225,005
225,060
225,114
225,168
225,223
225,277
225,332

#N/A
#N/A
#N/A
221,776
221,811
221,846
221,881
221,916
221,950
221,985
222,020
222,055
222,090
222,125
222,160
222,195
222,230
222,265
222,300
222,335
222,370
222,405
222,440
222,475
222,510
222,546
222,581
222,616
222,651
222,686
222,721
222,756
222,791
222,826
222,861
222,896
222,931
222,966
223,001
223,037
223,072
223,107
223,142
223,177
223,212
223,247
223,282
223,317
223,352
223,388
223,423
223,458

Page 18

Discount

223,493
223,528

226,653
226,721

226,020
226,080

225,386
225,440

223,493
223,528

Page 19

Service

MINIMUM COST SERVICE LEVEL

Part Name:
Part Number:

Test
12345

Annual Demand:
Order Quantity:
Annual Unit Holding Cost:
Stockout Cost:

10,000
1,000
10.00
20.00

Optimum Service Level:

units / year
units / order
$ / unit
$ / unit not available

95.00% if shortages are backlogged

95.24% if shortages are lost sales

Page 20

Safety

INVENTORY REORDER POINT

Part Name:
Part Number:
Annual Holding Cost:
Desired Service Level:
Daily Demand:
Std Dev of Demand:
Replenishment Leadtime:
Std Dev of Leadtime:
Combined Leadtime Demand:
Combined Leadtime Std Dev:
Reorder Point:
Annual Holding Cost:

Test
12345
25.00 $ / unit
95.00%
100.00
5.00
20.00
4.00

units / day
units / day
days
days

2,000.00 units
412.31 units
2,678 units
41,955 $ / year

< Page Down> for graph

Service/Inventory Trade-off Curve

Annual Holding Cost

80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
0.00

0.20

0.40

0.60
Service Level

Page 21

0.80

1.00

1.20

0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
0.41
0.42
0.43
0.44
0.45
0.46
0.47

Safety

0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.70
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
0.99

Page 22

Safety

1.00

Page 23

Safety

Service
Level

Normal
Z-Score

Rqd
Safety
Stock

0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.40
0.41
0.42
0.43
0.44
0.45
0.46
0.47

-2.326
-2.054
-1.881
-1.751
-1.645
-1.555
-1.476
-1.405
-1.341
-1.282
-1.227
-1.175
-1.126
-1.080
-1.036
-0.994
-0.954
-0.915
-0.878
-0.842
-0.806
-0.772
-0.739
-0.706
-0.674
-0.643
-0.613
-0.583
-0.553
-0.524
-0.496
-0.468
-0.440
-0.412
-0.385
-0.358
-0.332
-0.305
-0.279
-0.253
-0.228
-0.202
-0.176
-0.151
-0.126
-0.100
-0.075

(959)
(847)
(775)
(722)
(678)
(641)
(608)
(579)
(553)
(528)
(506)
(484)
(464)
(445)
(427)
(410)
(393)
(377)
(362)
(347)
(332)
(318)
(305)
(291)
(278)
(265)
(253)
(240)
(228)
(216)
(204)
(193)
(181)
(170)
(159)
(148)
(137)
(126)
(115)
(104)
(94)
(83)
(73)
(62)
(52)
(41)
(31)

Reorder
Point
1,041
1,153
1,225
1,278
1,322
1,359
1,392
1,421
1,447
1,472
1,494
1,516
1,536
1,555
1,573
1,590
1,607
1,623
1,638
1,653
1,668
1,682
1,695
1,709
1,722
1,735
1,747
1,760
1,772
1,784
1,796
1,807
1,819
1,830
1,841
1,852
1,863
1,874
1,885
1,896
1,906
1,917
1,927
1,938
1,948
1,959
1,969

Annual
Holding
Cost
1,021
3,830
5,613
6,954
8,045
8,974
9,788
10,517
11,180
11,790
12,357
12,889
13,389
13,864
14,317
14,749
15,165
15,565
15,951
16,325
16,688
17,040
17,384
17,720
18,048
18,369
18,683
18,992
19,296
19,595
19,889
20,179
20,465
20,748
21,028
21,305
21,579
21,851
22,121
22,389
22,655
22,919
23,182
23,444
23,705
23,965
24,224

Page 24

Safety

0.48
0.49
0.50
0.51
0.52
0.53
0.54
0.55
0.56
0.57
0.58
0.59
0.60
0.61
0.62
0.63
0.64
0.65
0.66
0.67
0.68
0.69
0.70
0.71
0.72
0.73
0.74
0.75
0.76
0.77
0.78
0.79
0.80
0.81
0.82
0.83
0.84
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
0.99

-0.050
-0.025
0.000
0.025
0.050
0.075
0.100
0.126
0.151
0.176
0.202
0.228
0.253
0.279
0.305
0.332
0.358
0.385
0.412
0.440
0.468
0.496
0.524
0.553
0.583
0.613
0.643
0.674
0.706
0.739
0.772
0.806
0.842
0.878
0.915
0.954
0.994
1.036
1.080
1.126
1.175
1.227
1.282
1.341
1.405
1.476
1.555
1.645
1.751
1.881
2.054
2.326

(21)
(10)
10
21
31
41
52
62
73
83
94
104
115
126
137
148
159
170
181
193
204
216
228
240
253
265
278
291
305
318
332
347
362
377
393
410
427
445
464
484
506
528
553
579
608
641
678
722
775
847
959

1,979
1,990
2,000
2,010
2,021
2,031
2,041
2,052
2,062
2,073
2,083
2,094
2,104
2,115
2,126
2,137
2,148
2,159
2,170
2,181
2,193
2,204
2,216
2,228
2,240
2,253
2,265
2,278
2,291
2,305
2,318
2,332
2,347
2,362
2,377
2,393
2,410
2,427
2,445
2,464
2,484
2,506
2,528
2,553
2,579
2,608
2,641
2,678
2,722
2,775
2,847
2,959

24,483
24,742
25,000
25,258
25,517
25,776
26,035
26,295
26,556
26,818
27,081
27,345
27,611
27,879
28,149
28,421
28,695
28,972
29,252
29,535
29,821
30,111
30,405
30,704
31,008
31,317
31,631
31,952
32,280
32,616
32,960
33,312
33,675
34,049
34,435
34,835
35,251
35,683
36,136
36,611
37,111
37,643
38,210
38,820
39,483
40,212
41,026
41,955
43,046
44,387
46,170
48,979

Page 25

Safety

1.00

4.768

1,966

3,966

74,151

Page 26

Newsvendor

`
ONE-TIME BUY INVENTORIES
Salvage Cost Excess Inventory:
Opportunity Cost of Shortage:

10 $ per unit
20 $ per unit

Minimum Likely Demand:

Most Likely (Expected) Demand:
Greatest Likely Demand:

10 units
20 units
40 units

Estimated Demand Mean:

Estimated Demand Std Dev:

23 units
6 units

Target Service Level:

Optimal Starting Inventory:

66.67%
26 units
< Page Down> for graphs

Estimated Demand Distribution

1.20

Probability

1.00
0.80
0.60
0.40
0.20
0.00
0

10

20

30

40

50

Demand

< Page Down> for graph

Estimated Demand Density

0.0700
0.0600

Density

0.0500
0.0400
0.0300
0.0200
0.0100
0.0000
0

10

20

30
Demand

Page 27

40

50

Newsvendor
Demand

Page 28

Newsvendor

Page 29

Newsvendor

Page 30

Newsvendor

Gamma:

Multiplier
-0.1000
-0.0900
-0.0800
-0.0700
-0.0600
-0.0500
-0.0400
-0.0300
-0.0200
-0.0100
0.0000
0.0100
0.0200
0.0300
0.0400
0.0500
0.0600
0.0700
0.0800
0.0900
0.1000
0.1100
0.1200
0.1300
0.1400
0.1500
0.1600
0.1700
0.1800
0.1900
0.2000
0.2100
0.2200
0.2300
0.2400
0.2500
0.2600
0.2700
0.2800
0.2900
0.3000
0.3100
0.3200
0.3300
0.3400
0.3500

alpha
beta

14.00
1.67

Triangle Gamma Triangle Gamma Optimal

Demand Density Density
Distrib
Distrib Inventory
7
0.0002
0.0001
0.667
7
0.0003
0.0002
0.667
8
0.0004
0.0003
0.667
8
0.0005
0.0004
0.667
8
0.0007
0.0006
0.667
9
0.0009
0.0008
0.667
9
0.0012
0.0012
0.667
9
0.0016
0.0016
0.667
9
0.0020
0.0021
0.667
10
0.0025
0.0028
0.667
10
0.0000
0.0031
0.0000
0.0036
0.667
10
0.0020
0.0038
0.0003
0.0047
0.667
11
0.0040
0.0046
0.0012
0.0059
0.667
11
0.0060
0.0056
0.0027
0.0075
0.667
11
0.0080
0.0066
0.0048
0.0093
0.667
12
0.0100
0.0078
0.0075
0.0115
0.667
12
0.0120
0.0091
0.0108
0.0140
0.667
12
0.0140
0.0105
0.0147
0.0169
0.667
12
0.0160
0.0121
0.0192
0.0203
0.667
13
0.0180
0.0138
0.0243
0.0242
0.667
13
0.0200
0.0156
0.0300
0.0286
0.667
13
0.0220
0.0175
0.0363
0.0336
0.667
14
0.0240
0.0196
0.0432
0.0392
0.667
14
0.0260
0.0217
0.0507
0.0454
0.667
14
0.0280
0.0240
0.0588
0.0522
0.667
15
0.0300
0.0263
0.0675
0.0597
0.667
15
0.0320
0.0286
0.0768
0.0680
0.667
15
0.0340
0.0310
0.0867
0.0769
0.667
15
0.0360
0.0335
0.0972
0.0866
0.667
16
0.0380
0.0359
0.1083
0.0970
0.667
16
0.0400
0.0384
0.1200
0.1081
0.667
16
0.0420
0.0408
0.1323
0.1200
0.667
17
0.0440
0.0432
0.1452
0.1326
0.667
17
0.0460
0.0456
0.1587
0.1460
0.667
17
0.0480
0.0478
0.1728
0.1600
0.667
18
0.0500
0.0500
0.1875
0.1747
0.667
18
0.0520
0.0521
0.2028
0.1900
0.667
18
0.0540
0.0541
0.2187
0.2059
0.667
18
0.0560
0.0560
0.2352
0.2224
0.667
19
0.0580
0.0577
0.2523
0.2395
0.667
19
0.0600
0.0592
0.2700
0.2570
0.667
19
0.0620
0.0607
0.2883
0.2750
0.667
20
0.0640
0.0619
0.3072
0.2934
0.667
20
0.0660
0.0630
0.3267
0.3121
0.667
20
0.0660
0.0639
0.3466
0.3312
0.667
21
0.0650
0.0647
0.3663
0.3505
0.667

Page 31

Newsvendor

0.3600
0.3700
0.3800
0.3900
0.4000
0.4100
0.4200
0.4300
0.4400
0.4500
0.4600
0.4700
0.4800
0.4900
0.5000
0.5100
0.5200
0.5300
0.5400
0.5500
0.5600
0.5700
0.5800
0.5900
0.6000
0.6100
0.6200
0.6300
0.6400
0.6500
0.6600
0.6700
0.6800
0.6900
0.7000
0.7100
0.7200
0.7300
0.7400
0.7500
0.7600
0.7700
0.7800
0.7900
0.8000
0.8100
0.8200
0.8300
0.8400
0.8500
0.8600
0.8700

21
21
21
22
22
22
23
23
23
24
24
24
24
25
25
25
26
26
26
27
27
27
27
28
28
28
29
29
29
30
30
30
30
31
31
31
32
32
32
33
33
33
33
34
34
34
35
35
35
36
36
36

0.0640
0.0630
0.0620
0.0610
0.0600
0.0590
0.0580
0.0570
0.0560
0.0550
0.0540
0.0530
0.0520
0.0510
0.0500
0.0490
0.0480
0.0470
0.0460
0.0450
0.0440
0.0430
0.0420
0.0410
0.0400
0.0390
0.0380
0.0370
0.0360
0.0350
0.0340
0.0330
0.0320
0.0310
0.0300
0.0290
0.0280
0.0270
0.0260
0.0250
0.0240
0.0230
0.0220
0.0210
0.0200
0.0190
0.0180
0.0170
0.0160
0.0150
0.0140
0.0130

Page 32

0.0653
0.0657
0.0659
0.0660
0.0659
0.0656
0.0652
0.0646
0.0639
0.0631
0.0622
0.0611
0.0600
0.0587
0.0574
0.0560
0.0545
0.0529
0.0514
0.0497
0.0481
0.0464
0.0448
0.0431
0.0414
0.0397
0.0380
0.0364
0.0348
0.0332
0.0316
0.0300
0.0286
0.0271
0.0257
0.0243
0.0230
0.0217
0.0205
0.0193
0.0182
0.0171
0.0160
0.0151
0.0141
0.0132
0.0124
0.0115
0.0108
0.0101
0.0094
0.0087

0.3856
0.4047
0.4234
0.4419
0.4600
0.4779
0.4954
0.5127
0.5296
0.5463
0.5626
0.5787
0.5944
0.6099
0.6250
0.6399
0.6544
0.6687
0.6826
0.6963
0.7096
0.7227
0.7354
0.7479
0.7600
0.7719
0.7834
0.7947
0.8056
0.8163
0.8266
0.8367
0.8464
0.8559
0.8650
0.8739
0.8824
0.8907
0.8986
0.9063
0.9136
0.9207
0.9274
0.9339
0.9400
0.9459
0.9514
0.9567
0.9616
0.9663
0.9706
0.9747

0.3700
0.3896
0.4094
0.4292
0.4489
0.4687
0.4883
0.5078
0.5270
0.5461
0.5649
0.5834
0.6016
0.6194
0.6368
0.6538
0.6703
0.6865
0.7021
0.7173
0.7320
0.7461
0.7598
0.7730
0.7856
0.7978
0.8095
0.8206
0.8313
0.8415
0.8512
0.8604
0.8692
0.8776
0.8855
0.8930
0.9001
0.9068
0.9131
0.9191
0.9247
0.9300
0.9349
0.9396
0.9440
0.9481
0.9519
0.9555
0.9588
0.9620
0.9649
0.9676

0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667

Newsvendor

0.8800
0.8900
0.9000
0.9100
0.9200
0.9300
0.9400
0.9500
0.9600
0.9700
0.9800
0.9900
1.0000
1.0100
1.0200
1.0300
1.0400
1.0500
1.0600
1.0700
1.0800
1.0900
1.1000
1.0210
1.0220
1.0230
1.0240
1.0250
1.0260
1.0270
1.0280
1.0290
1.0300
1.0310
1.0320
1.0330
1.0340
1.0350
1.0360
1.0370
1.0380
1.0390
1.0400
1.0410
1.0420
1.0430
1.0440
1.0450
1.0460
1.0470
1.0480
1.0490

36
37
37
37
38
38
38
39
39
39
39
40
40
40
41
41
41
42
42
42
42
43
43
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41

0.0120
0.0110
0.0100
0.0090
0.0080
0.0070
0.0060
0.0050
0.0040
0.0030
0.0020
0.0010
0.0000

Page 33

0.0081
0.0075
0.0070
0.0065
0.0060
0.0056
0.0052
0.0048
0.0044
0.0041
0.0038
0.0035
0.0032
0.0029
0.0027
0.0025
0.0023
0.0021
0.0019
0.0018
0.0016
0.0015
0.0013
0.0027
0.0027
0.0026
0.0026
0.0026
0.0026
0.0025
0.0025
0.0025
0.0025
0.0025
0.0024
0.0024
0.0024
0.0024
0.0024
0.0023
0.0023
0.0023
0.0023
0.0023
0.0022
0.0022
0.0022
0.0022
0.0022
0.0021
0.0021
0.0021

0.9784
0.9819
0.9850
0.9879
0.9904
0.9927
0.9946
0.9963
0.9976
0.9987
0.9994
0.9999
1.0000

0.9701
0.9725
0.9746
0.9767
0.9785
0.9803
0.9819
0.9834
0.9848
0.9860
0.9872
0.9883
0.9893
0.9902
0.9910
0.9918
0.9925
0.9932
0.9938
0.9943
0.9948
0.9953
0.9957
0.9911
0.9912
0.9913
0.9914
0.9914
0.9915
0.9916
0.9917
0.9917
0.9918
0.9919
0.9920
0.9920
0.9921
0.9922
0.9923
0.9923
0.9924
0.9925
0.9925
0.9926
0.9927
0.9927
0.9928
0.9929
0.9929
0.9930
0.9931
0.9931

0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667

Newsvendor

1.0500
1.0510
1.0520
1.0530
1.0540
1.0550
1.0560
1.0570
1.0580
1.0590
1.0600
1.0610
1.0620
1.0630
1.0640
1.0650
1.0660
1.0670
1.0680
1.0690
1.0700
1.0710
1.0720
1.0730
1.0740
1.0750
1.0760
1.0770
1.0780
1.0790
1.0800
1.0810
1.0820
1.0830
1.0840
1.0850
1.0860
1.0870
1.0880
1.0890
1.0900
1.0910
1.0920
1.0930
1.0940
1.0950
1.0960
1.0970
1.0980
1.0990
1.1000

42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
43
43
43
43
43
43
43
43
43
43
43
43
43
43
43
43
43

0.0021
0.0021
0.0021
0.0020
0.0020
0.0020
0.0020
0.0020
0.0020
0.0019
0.0019
0.0019
0.0019
0.0019
0.0019
0.0018
0.0018
0.0018
0.0018
0.0018
0.0018
0.0017
0.0017
0.0017
0.0017
0.0017
0.0017
0.0017
0.0016
0.0016
0.0016
0.0016
0.0016
0.0016
0.0016
0.0015
0.0015
0.0015
0.0015
0.0015
0.0015
0.0015
0.0014
0.0014
0.0014
0.0014
0.0014
0.0014
0.0014
0.0014
0.0013

Page 34

0.9932
0.9933
0.9933
0.9934
0.9934
0.9935
0.9936
0.9936
0.9937
0.9937
0.9938
0.9939
0.9939
0.9940
0.9940
0.9941
0.9941
0.9942
0.9942
0.9943
0.9943
0.9944
0.9944
0.9945
0.9946
0.9946
0.9947
0.9947
0.9948
0.9948
0.9948
0.9949
0.9949
0.9950
0.9950
0.9951
0.9951
0.9952
0.9952
0.9953
0.9953
0.9954
0.9954
0.9954
0.9955
0.9955
0.9956
0.9956
0.9957
0.9957
0.9957

0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667
0.667