Optimal Order Quantity:

Qopt =

2 ( 1000 ) 25
2 DS
=
=22 unit
H
100
25000

20000

Q
15000

T otal Holding Cost

T otal Setup Cost

Cos t ($)
10000

5000

T otal Cost
0
0

50

100

150

200

250

300

350

400

450

500

Orde r Quantity

Sehingga jumlah order optimal sebanyak 22 unit

Fixed Time Period Model with Safety Stock (P-Model)

Diketahui :
14
T
10
L
13.70 d-bar
5
d
95% L
150 I

Number of days between reviews

Lead time in days
Forecast average daily demand (d-bar) 5000 per tahun/365 hari
Standard deviation of demand
Service Level
Current inventory level

Solusi:
Standard deviation of demand over the review and lead time

T+L

T + L=

i=1

2dj = ( 14+10 ) ( 5 )2=24,495

z-value for the stated service level 95%

z =1.645
Average demand over the vulnerable period

q=d ( T + L )=13,7 ( 14 +10 )=328,77 q

Safety stock

SS=z T + L=1.645 ( 24,495 )=40,29

Order Quantity

q=d ( T + L ) + z T + L I
328,77+40,29150

219unit

Fixed Time Period Model with Safety Stock (P-Model)

Diketahui:
4
T
3
L
150 d-bar
30
sd
98% L
500 I
Solusi:
79.373
time
2.054 z
1050
163.01
713 q

Number of weeks between reviews

Lead time in week
Forecast average weekly demand (d-bar)
Standard deviation of demand
Service Level
Current inventory level

T+L

Standard deviation of demand over the review and lead

z-value for the stated service level

Average demand over the vulnerable period
SS
Safety stock
Order Quantity

Fixed Order Quantity Model with Safety Stock

Diketahui:
15.600
300 d-bar
$31.20
4
L
$0.1 H
90
d

D
Annual Demand
Forecast weekly demand
S
Set up cost or Cost of placing an order
Lead time (week)
Annual inventory carrying cost per unit
Standard deviation of weekly demand

We need to calculate the amount of product used during the lead time and add
this to the safety stock. The standard deviation of demand during the lead time
of 4 weeks is calculated from variance of the individual weeks. Because each
weeks demand is independent.

L=

i =1

2d = 4 ( 90 )2=180

z-value for the stated service level 98%

z = 2,054
Reorder Point

R= d L+ z L =300 ( 4 ) +2,054 ( 180 )=1.569,72units

An order will placed whenever the number of units remaining in inventory drops
to 1.570.
Production manager asked to reduce safety stock 50%

SS=z L
50 ( 2,054 ) 180= z(180)

184.86=z (180)
z=1.027
The new service probabilty will be 85% calculate from excel NORMSDIST(1,027)

Fixed Order Quantity Model with Safety Stock

Diketahui:
13.000
250 d-bar
$100 S
4
L
$0.65 H
40
d

D
Annual Demand
Forecast weekly demand
Set up cost or Cost of placing an order
Lead time (week)
Annual inventory carrying cost per unit
Standard deviation of weekly demand

We need to calculate the amount of product used during the lead time and add
this to the safety stock. The standard deviation of demand during the lead time
of 4 weeks is calculated from variance of the individual weeks. Because each
weeks demand is independent.

L=

i =1

2d = 4 ( 40 )2=80

z-value for the stated service level 98%

z = 2,054
Reorder Point

R= d L+ z L =250 ( 4 ) +2,054 ( 80 )=1.164,32units

An order will placed whenever the number of units remaining in inventory drops
to 1.164.
Production manager asked to reduce safety stock of this item by 100 units

SS=z L
z ( 80 )=2,054100
z=0,804
The new service probabilty will be 79% calculate from excel NORMSDIST(0,804)

a. EOQ

Qopt =

2(2400)5
2 DS
=
=77
H
4

b. Reorder Point (R)

L=

i =1

2d = 7 ( 4 )2=10,58

z-value for the stated service level 98%

z = 2,054
Reorder Point

2400 =6,58
d=
365
R= d L+ z L =6,58 ( 7 ) +2,054 (10,58 )=67,76 units
An order will placed whenever the number of units remaining in inventory drops
to 68 unit.
100.0

78.0
67.8
Inventory Buildup

Quantity

Order Rec eived

Usage Rate

50.0

Reorder Point

0.0

0.0
0

0.0
10

20

30

40

Tim e Horizon

50

60

70