Example 2

Lot-for-Lot
Week
Gross Requirement
Beginning Inventory
Net Requirements
Time-Phased Net Requirements
Planned Order release
Planned Deliveries
Ending inventory

1
30
90
0
20
20
0
60

2
50
60
0
70
70
0
10

3
10
0
0
80
80
0
0

4
20
0
20
20
20
20
0

5
6
70 80
0
0
70 80
60 200
60 200
70 80
0
0

7
8
9
20 60 200
0
0
0
20 60 200
50
50
20 60 200
0
0
0

10
50
0
50

Costs
Ordering cost
Carrying cost

0
0
0.6 0.1

0
0

10
0

10
0

10 10
0
0

10
0

Total cost
70.7

10
0

10
0

50
0

Example 2
EOQ
10-week demand
Annual demand, D
Ordering cost, S
Holding cost per unit per week
Holding cost per unit per year, H
EOQ value

590
3068
10
0.01
0.52
344

Week
Gross Requirement
Beginning Inventory
Net Requirements
Time-Phased Net Requirements
Planned Order release
Planned Delieveries
Ending inventory

1
30
90
0
20
344
0
60

Costs
Ordering cost
Carrying cost

0
0
0.6 0.1

Total cost
34.92

2
50
60
0
0
0
0
10

3
4
5
10 20 70
10
0 324
0 20
0
0
0
0
0
0
0
0 344
0
0 324 254

6
80
254
0
106
344
0
174

7
8
9 10
20 60 200 50
174 154 94 237
0
0 106
0
0
0
0
0 344
0
154 94 237 187

0 10
0
0
0
0 10
0
0 3.24 2.5 1.74 1.54 0.94 2.4 1.87

Example 2
Silver-Meal Heuristic
Ordering cost, S
Holding cost per unit

10
0.01 per week

Week
Gross Requirement
Beginning Inventory
Net Requirements
Time-Phased Net Requirements
Planned Order release
Planned Delieveries
Ending inventory

1
30
90
0
20
250
0
60

2
50
60
0
0
0
0
10

3
10
10
0
0
0
0
0

4
20
0
20
0
0
250
230

5
70
230
0
0
0
0
160

6
80
160
0
150
250
0
80

7
20
80
0
0
0
0
60

8
60
60
0

9
200
50
150

0
0

250
100

Costs
Ordering cost
Carrying cost

0
0.6

0
0.1

0
0

10
2.3

0
1.6

0
0.8

0
0.6

0
0

10
1

Total cost
27.50
Calculations
j
rj
Order for weeks
1 week, week 4
2 weeks, weeks 4 to 5
3 weeks, weeks 4 to 6
4 weeks, weeks 4 to 7
5 weeks, weeks 4 to 8
6 weeks, weeks 4 to 9
7 weeks, weeks 4 to 10
1 week, week 9
2 weeks, weeks 9 to 10

1
2
3
4
5
6
7
20 70
80
20
60 200
50
Units in the inventory at the end of Week
H.
Q
4
5
6
7
8
9
10 Cost
20
0.00
90 70
0.70
170 150 80
2.30
190 170 100
20
2.90
250 230 160
80
60
5.30
450 430 360 280 260 200
15.30
Not computed
200
0.00
250
50
0.50

10
50
100
0

0
50

0
0.5

Ord. Periodic
Cost
Cost
10
10
10
5.35
10
4.1
10
3.225
10
3.06
10 4.21667
10
10

0.05
0.042

Example 2
Least Unit Cost
Ordering cost, S
Holding cost per unit

10
0.01 per week

Week
Gross Requirement
Beginning Inventory
Net Requirements
Time-Phased Net Requir
Planned Order release
Planned Delieveries
Ending inventory

1
30
90
0
20
450
0
60

2
50
60
0
0
0
0
10

Costs
Ordering cost
Carrying cost

0
0.6

0
0.1

3
4
10 20
10
0
0 20
0
0
0
0
0 450
0 430

0
0

10
4.3

5
70
430
0
0
0
0
360

6
7
8
80 20
60
360 280 260
0
0
0
0 50
0 50
0
0
0
280 260 200

0
3.6

0
2.8

0
2.6

0
2

9
200
200
0

10
50
0
50

0
0

50
0

0
0

10
0

Total cost
36.00
Calculations
j
rj
Order for weeks
1 week, week 4
2 weeks, weeks 4 to 5
3 weeks, weeks 4 to 6
4 weeks, weeks 4 to 7
5 weeks, weeks 4 to 8
6 weeks, weeks 4 to 9
7 weeks, weeks 4 to 10
1 week, week 10

1
2
3
4
5
6
7
20 70 80
20
60 200
50
Units in the inventory at the end of Week
H. Ord.
Q
4
5
6
7
8
9
10 Cost Cost
20
0.00
10
90 70
0.70
10
170 150 80
2.30
10
190 170 100 20
2.90
10
250 230 160 80
60
5.30
10
450 430 360 280 260 200
15.30
10
500 480 410 330 310 250 50
18.30
10
50
0.00
10

Unit
Cost
0.5
0.119
0.072
0.068
0.061
0.056
0.057
0.2

Example 2
Part Period Balancing
Ordering cost, S
Holding cost per unit

10
0.01 per week

Week
Gross Requirement
Beginning Inventory
Net Requirements
Time-Phased Net Requirements
Planned Order release
Planned Delieveries
Ending inventory

1
30
90
0
20
250
0
60

2
50
60
0
0
0
0
10

3
10
10
0
0
0
0
0

4
20
0
20
0
0
250
230

5
70
230
0
0
0
0
160

6
80
160
0
200
250
0
80

7
20
80
0
0
0
0
60

8
60
60
0

9
200
0
200

0
0

250
50

Costs
Ordering cost
Carrying cost

0
0.6

0
0.1

0
0

10
2.3

0
1.6

0
0.8

0
0.6

0
0

10
0.5

Total cost
26.50
Calculations
j
rj
Order for weeks
1 week, week 4
2 weeks, weeks 4 to 5
3 weeks, weeks 4 to 6
4 weeks, weeks 4 to 7
5 weeks, weeks 4 to 8
6 weeks, weeks 4 to 9
7 weeks, weeks 4 to 10
1 week, week 9
2 weeks, weeks 9 to 10

1
2
3
4
5
6
7
20
70
80
20
60 200 50
Units in the inventory at the end of Week
H.
Q
4
5
6
7
8
9 10 Cost
20
0.00
90
70
0.70
170 150
80
2.30
190 170 100
20
2.90
250 230 160
80
60
5.30
450 430 360 280 260 200
15.30
Not computed
200
0.00
250
50
0.50

10
50
50
0

0
0

0
0

Ord.
Cost
10
10
10
10
10
10
10
10