Spare Part Inventory Analysis Report

Material #

000165021

Material Description

ARM,DRIVE,4016611,TITAN

Unit Price

CAD

Plant

StLoc.

0611

5 yrs
Annual
Cons.

Maximum
SoH
Level

Average
Reorder Point
Cons.

13.16

Lead Time in Days

Planned Delivery
Lead Time

GR Processing
Lead Time

Latest Goods Receipt

Date

Latest Goods
Issue Date

2/17/2012

1/12/2012

Material Consumption for Past 5 Years or 60 Months

000165021

1.2

1
0.8
0.6

0.4
0.2

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
2015-12 2015-09 2015-06 2015-03 2014-12 2014-09 2014-06 2014-03 2013-12 2013-09 2013-06 2013-03 2012-12 2012-09 2012-06 2012-03

Annual demand
90%

Service Level 90%

Per Order cost

SL Factor

1.28

Risk of a StockOut 10%

Holding Cost /Unit/Year

Economic Order Quantity

2011-03

EOQ
Total Holding Cost
Total Ordering Cost
Total Cost

0.8

Risk of a
StockOut 10%

2011-06

EOQ Model

0.9

Service Level
90%

68%

2011-09

95%

2011-12

Service Level

Normal Distribution- Curve

0 0 0 0 0 0 0 0 0 0 0 0

0.7

Cost ($)

0.6
0.5
0.4
0.3
0.2

EOQ
5

0.1
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%

Percentile

Order Quantity

Safety Stock (SS)

Demand During Lead Time

Reorder Point (RoP)

Economic Order Qty (EoQ)

EOQ = Economic order quantity

Stock On Hand
Co = Cost of procurement
S = Annual usage
0
Cm = Annual carrying costs
U = Cost of the item.
CAD
DDL = Demand during Lead Time or working stock.
S = Annual usage of the item (demand)
LT = Lead time in days.
SS = Safety stock.
SD = Standard deviation of monthly demand.
SL = Standard deviation of Lead-time.
SL Factor = The normal distribution value which yields the desired service level factor

IOC
EXISTING MIN

IOC
EXISTING MAX

SKF
MIN

SKF
MAX

CAD

CAD

Movement Type
Ranking

Lead Time Ranking

CAD

CAD

SKF Remarks

NO STOCK SUGGESTED
Unit Cost Ranking