Spare Part Inventory Analysis Report

3Yrs
Annual
Cons.

StLoc.
2
Material #

000134889

Material Description

ASSEMBLY,HOLD-DOWN-STRETCH,SPA-099451

Unit Price

CAD

Plant

0611

Average
Annual Reorder Point
Cons.

Maximum
SoH
Level

CR-MINE

55

19

CR-SH

73

25

5.09

Lead Time in Days

Planned Delivery Lead
Time

GR Processing
Lead Time

28

Material Consumption for Past 5 Years or 60 Months

000134889

20

16

16

16

14

15

11
8 8

10

5 6

5
0 0 0 0

0
2015-12
-5

2015-09

0 0 0 0
2015-06

2015-03

2014-12

11

10

0 0 0 0 0
2014-09

2014-06

2014-03

6
0 0

2013-12

2013-09 2013-06
-2

4
1 0 0

0 0

2013-03

2012-12

0 0 0 0
2012-09

2012-06

2012-03

Annual demand

2011-12

0 0

75%

Service Level 75%

Per Order cost

CAD

SL Factor

0.67

Risk of a StockOut 25%

Holding Cost /Unit/Year

CAD

2011-09

2011-06
-1 2011-03

1.27 25 % of the Unit Price

EOQ Model
EOQ
Total Holding Cost
Total Ordering Cost
Total Cost

95%
800
700

Risk of a
StockOut 25%

49

900
Service Level
75%

0 0

35.00 Fixed Cost

Economic Order Quantity

68%

44

Service Level

Normal Distribution- Curve

0 0 0

Cost ($)

600
500
400
300

$63.0

200
100
0
0.1%

0.6%

2.3%

6.7%

15.9%

30.9%

50.0%

69.1%

84.1%

93.3%

97.7%

99.4%

99.9%

50

100

Percentile

150

200

250

300

350

Order Quantity

Safety Stock (SS)

Demand During Lead Time

Reorder Point (RoP)

Economic Order Qty (EoQ)

49

EOQ = Economic order quantity

IOC
Co = Cost of procurement
Stock On Hand
EXISTING MIN
S = Annual usage
Cm = Annual carrying costs
8
6
U = Cost of the item.
DDL = Demand during Lead Time or working stock.
CAD
40.72 CAD
30.54
S = Annual usage of the item (demand)
LT = Lead time in days.
Movement Type
SS = Safety stock.
Ranking
SD = Standard deviation of monthly demand.
SL = Standard deviation of Lead-time.
Lead Time Ranking
SL Factor = The normal distribution value which yields the desired service level factor

Unit Cost Ranking

Recommended MIN_MAX
IOC
EXISTING MAX

SKF MIN

SKF MAX

57

CAD

40.72 CAD

40.72 CAD

290.13

SKF Remarks

Min= ROP and Max = ROP +

EOQ