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Spare Part Inventory Analysis Report

5 yrs
Annual
Cons.

Maximum
SoH
Level

Average
Reorder Point
Cons.

StLoc.

0611

2227

446

200

76

Material #

000022414

Material Description

NUT,LOCK,LN050,IBERVIL

250

50

26

50

50

Unit Price

CAD

M#4E

90

45

30

30

2200

440

100

100

Plant

0.05

Lead Time in Days

SD

Planned Delivery
Lead Time

GR Processing
Lead Time

10

Latest Goods Receipt


Date

Latest Goods
Issue Date

11/10/2015

11/20/2015

Material Consumption for Past 5 Years or 60 Months


000022414

500

400

400

322
250

300
200

130
100

100125

100

30

0
0
2015-12
-100

2015-09

215

0 24

2015-06

2015-03

0 0 12

0 0
2014-12

2014-09

156
100100100

124

108

100

230

2014-06

24 0

0 0
2014-03

2013-12

2013-09

125

100

2013-06

30

2013-03

32

200
160140

100
25

2012-12

25 0 0

2012-09

100

0 0

2012-06

2012-03

Annual demand

50

150
100

Service Level 85%

Per Order cost

CAD

35.00

SL Factor

1.04

Risk of a StockOut 15%

Holding Cost /Unit/Year

CAD

0.01

Economic Order Quantity

Risk of a
StockOut 15%

3000

2011-06

2011-03
-70

2312

EOQ
Total Holding Cost
Total Ordering Cost
Total Cost

95%
3500

2011-09

EOQ Model

4000
Service Level
85%

100

954

85%

68%

200

0 0

2011-12

Service Level

Normal Distribution- Curve

250

200

Cost ($)

2500
2000
1500
1000

EOQ
2312

500
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%

500

1000

Percentile

1500

2000

2500

Order Quantity

Safety Stock (SS)

Demand During Lead Time

Reorder Point (RoP)

Economic Order Qty (EoQ)

64

34

98

2312

IOC
EOQ = Economic order quantity
Stock On Hand
EXISTING
MIN
Co = Cost of procurement
S = Annual usage
256
26
Cm = Annual carrying costs
U = Cost of the item.
CAD
12.80 CAD
1.30
DDL = Demand during Lead Time or working stock.
S = Annual usage of the item (demand)
Movement Type
LT = Lead time in days.
Ranking
SS = Safety stock.
SD = Standard deviation of monthly demand.
Lead Time Ranking
SL = Standard deviation of Lead-time.
SL Factor = The normal distribution value which yields the desired service level factor
Unit Cost Ranking

IOC
EXISTING MAX

SKF
MIN

SKF
MAX

200

98

2410

CAD

10.00 CAD

4.90 CAD

120.50

SKF Remarks

RE-ORDER POINT (ROP) WILL BE MIN AND


RE-ORDER POINT (ROP)+ ECONOMIC
ORDER QTY (EOQ) WILL BE MAX