ITEM NO

1
2
3
4
5
ITEM
P0110
P0X
P0Y
P1X1
P1X2

ITEM
P0110
P0X
P0Y
P1X1
P1X2

WEEK
WEEKLY NET REQUIREMENTS

Trial lot size

Carrying cost
No. of setups
Setup cost
Total cost

Product
P0110

P0X
P0Y
P1X1

P1x2

Product
P0110

P0X
P0Y
P1X1
P1x2

Product
P0110
P0X
P0Y
P1X1
P1x2

Lot for lot incurs the maximum cost where as least cost method

PART NO

QTY

P0110

POX

POY

P1X1

P1X2

3
COST PER UNIT

SET UP COST

200

500

65

400

35

350

430

15

400

INVENTORY
240
500
340
500
600

400

350

400
1380
7
3500
4880

750
1380
4
2000
3380

Demand

On hand

3000
5520
5520
20080

240

Lot for lot

500
340
500

15060

600

Demand

OHI

3000
5520
5520
20080
15060

240

Demand

OHI

3000
5520
5520
20080
15060

240
500
340
500
600

500
340
500
600

curs the maximum cost where as least cost method is the best suited one. It is better than EOQ model as the lot size increases and hence t
cost goes down.

LEVEL

LEAD TIME

ON HAND INVENTORY

240

500

340

500

600

300

450

300

1050
1380
3
1500
2880

1500
1380
2
1000
2380

1800
1380
2
1000
2380

Net Demand

Costing

Setup cost

181300
97900

4000
3200
2800
3440

Carrying cost
1
0.325
0.175
0.025
0.075

Lot for lot

2760
5020
5180
19580

14460

216900

3200

EOQ Model
Net Demand

Lot size

Carrying cost

2760
5020
5180
19580
14460

613
1226
1839
2452
1839

1
0.325
0.175
0.025
0.075

Net Demand

Lot size

2760
5020
5180
19580
14460

1000
2461.538462
4000
34400
10666.66667

Least cost technique

Carrying cost

than EOQ model as the lot size increases and hence the setup

1
0.325
0.175
0.025
0.075

LOT SIZES
613
1,226
1,839
2,452
1,839

450

225

525

2250
1380
2
1000
2380

2475
1380
2
1000
2380

3000
1380
1
500
1880

Total cost

512740

512740

odel
Average Inventory Carrying Costs

Setups

Setup cost

1380
815.75
453.25
244.75
542.25

5
5
3
8
8

2500
2000
1050
3440
3200

Average Inventory Carrying Costs

Setups

Setup cost

1380
815.75
453.25
244.75
542.25

3
3
2
1
2

1500
1200
700
430
800

echnique

Costing

Total cost

181300
97900
216900

511726

Costing

Total cost

181300
97900
216900

504166

Week

P 0110 LT=2
OHI = 240

P 0X LT=1
OHI = 500

P 0Y LT=1
OHI = 340

P 1X1 LT=1
OHI = 500

P 1X2 LT=1
OHI = 600

Gross requirements
Scheduled receipts
Proj. avail. Balance
Net requirements
Planned order receipt
Planned order release
Gross requirements
Scheduled receipts
Proj. avail. Balance
Net requirements
Planned order receipt
Planned order release
Gross requirements
Scheduled receipts
Proj. avail. Balance
Net requirements
Planned order receipt
Planned order release
Gross requirements
Scheduled receipts
Proj. avail. Balance
Net requirements
Planned order receipt
Planned order release
Gross requirements
Scheduled receipts
Proj. avail. Balance
Net requirements
Planned order receipt
Planned order release

-1

1000
2000
500
1500
2462
2462
2000
340

-20
0

0
962

400

350

300

450

300

450

225

240
160
1000

840

490

190
260
1000
1000
0 2000

740

440
10
1000

990

1000
0 2000
962

962 1424 1424 1886 1886 1886

1038
576
2462
2462
0 2462
2462
0
0 2000
0 2000
0
0
0

20
-20
0 2000
0 2000
-20
0 2000
0 2000
0 2000
0 2000
0
0 9848
0 9848
0

0
0
0
0

0
0
0
0

0
0
0
0

500
-500
0 9848
0 9848
-500
0 9848
0 9848
-500
0 9848
0 9848
0
0
0 7386
0 7386

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

600
-600
0 7386
0 7386
-600
0 7386
0 7386
-600
0 7386
0 7386
0

0
0
0

0
0
0

0
0
0

0
0
0

525
765

240

Product
0
1886

0
0
0
0

0
0
0
0

0
0
0

P0110
P0X
P0Y
P1X1
P1x2

Lot size

1000
Lot Size used here in MRP sheet is according to Leas
2461.53846
Cost Method as it was seen to be best suited for the
4000
case.
34400
10666.6667

eet is according to Least

to be best suited for the