Example 10.

1:
Inputs
Demand, R =
Fixed cost per order, S=
Cost per unit, C =
Holding cost, h=
Order Size Increment =
Lot
Size
800
820
840
860
880
900
920
940
960
980
1000
1020
1040
1060
1080
1100
1120
1140
1160
1180
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
1400

Annual
Order Cost
$
60,000
$
58,537
$
57,143
$
55,814
$
54,545
$
53,333
$
52,174
$
51,064
$
50,000
$
48,980
$
48,000
$
47,059
$
46,154
$
45,283
$
44,444
$
43,636
$
42,857
$
42,105
$
41,379
$
40,678
$
40,000
$
39,344
$
38,710
$
38,095
$
37,500
$
36,923
$
36,364
$
35,821
$
35,294
$
34,783
$
34,286

ECONOMIC ORDER QUANTITY

$
$

12,000
4,000
500
20%

EOQ =

20
Annual
Holding Cost
$ 40,000
$
41,000
$
42,000
$
43,000
$
44,000
$
45,000
$
46,000
$
47,000
$
48,000
$
49,000
$
50,000
$
51,000
$
52,000
$
53,000
$
54,000
$
55,000
$
56,000
$
57,000
$
58,000
$
59,000
$
60,000
$
61,000
$
62,000
$
63,000
$
64,000
$
65,000
$
66,000
$
67,000
$
68,000
$
69,000
$
70,000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Total
Cost
100,000
99,537
99,143
98,814
98,545
98,333
98,174
98,064
98,000
97,980
98,000
98,059
98,154
98,283
98,444
98,636
98,857
99,105
99,379
99,678
100,000
100,344
100,710
101,095
101,500
101,923
102,364
102,821
103,294
103,783
104,286

#NAME?

1420
1440
1460
1480
1500
1520
1540
1560
1580
1600
1620
1640
1660
1680
1700
1720
1740
1760
1780
1800
1820
1840
1860
1880
1900
1920
1940
1960
1980
2000
2020
2040
2060
2080
2100
2120
2140
2160
2180
2200
2220
2240
2260

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

33,803
33,333
32,877
32,432
32,000
31,579
31,169
30,769
30,380
30,000
29,630
29,268
28,916
28,571
28,235
27,907
27,586
27,273
26,966
26,667
26,374
26,087
25,806
25,532
25,263
25,000
24,742
24,490
24,242
24,000
23,762
23,529
23,301
23,077
22,857
22,642
22,430
22,222
22,018
21,818
21,622
21,429
21,239

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

71,000
72,000
73,000
74,000
75,000
76,000
77,000
78,000
79,000
80,000
81,000
82,000
83,000
84,000
85,000
86,000
87,000
88,000
89,000
90,000
91,000
92,000
93,000
94,000
95,000
96,000
97,000
98,000
99,000
100,000
101,000
102,000
103,000
104,000
105,000
106,000
107,000
108,000
109,000
110,000
111,000
112,000
113,000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

104,803
105,333
105,877
106,432
107,000
107,579
108,169
108,769
109,380
110,000
110,630
111,268
111,916
112,571
113,235
113,907
114,586
115,273
115,966
116,667
117,374
118,087
118,806
119,532
120,263
121,000
121,742
122,490
123,242
124,000
124,762
125,529
126,301
127,077
127,857
128,642
129,430
130,222
131,018
131,818
132,622
133,429
134,239

2280
2300
2320
2340
2360
2380
2400
2420
2440
2460
2480

$
$
$
$
$
$
$
$
$
$
$

21,053
20,870
20,690
20,513
20,339
20,168
20,000
19,835
19,672
19,512
19,355

$
$
$
$
$
$
$
$
$
$
$

114,000
115,000
116,000
117,000
118,000
119,000
120,000
121,000
122,000
123,000
124,000

$
$
$
$
$
$
$
$
$
$
$

135,053
135,870
136,690
137,513
138,339
139,168
140,000
140,835
141,672
142,512
143,355

Costs vs. Order Quantity

160000

140000

120000

100000

80000
Cost
60000

40000

20000

Order Quantity
Column B

Column C

Column D

Lotes de mltiples productos ordenados y entregados de modo de forma conjunta

Annual demand for Litepro, DL =
Annual demand for Medpro, DM =
Annual demand for Heavypro, DH =
Product specific ordering cost, sL =
Product specific ordering cost, sM =
Product specific ordering cost, sH =
Unit Cost, CL =
Unit Cost, CM =
Unit Cost, CH =
Common order cost, S =
Holding cost, h =

$
$
$
$
$
$
$

12,000
1,200
120
1,000
1,000
1,000
500.00
500.00
500.00
4,000
20%

Order each product independently (Example 10.3)

# orders/year
EOQ
Order Cost Holding Cost
Total cost
Litepro
11.0
1,095
$
54,772 $
54,772 $
109,545
Medpro
3.5
346
$
17,321 $
17,321 $
34,641
Heavypro
1.1
110
$
5,477 $
5,477 $
10,954
$ 155,140
Your Guess Total Cost
$
155,140
Optimal Solution Cost
$ 155,140
Savings from Optimization $ -

Mltiples productos con lotes ordenados y entregados de forma conjunta

Annual demand for Litepro, DL =
Annual demand for Medpro, DM =
Annual demand for Heavypro, DH =
Product specific ordering cost, sL =
Product specific ordering cost, sM =
Product specific ordering cost, sH =
Unit Cost, CL =
Unit Cost, CM =
Unit Cost, CH =
Common order cost, S =
Holding cost, h =

12,000
1,200
120
$ 1,000
$ 1,000
$ 1,000
$ 500
$ 500
$ 500
$ 4,000
20%

Order all products simultaneously (Example 10.4)

# orders/year
Order Size
Order Cost
Litepro
9.8
1,224
$ 48,771
Medpro
9.8
122 $
9,800
Heavypro
9.8
12.2 $
9,800
Your Guess Total Cost
Optimal Solution Total Cost
Savings from Optimization

$ 155,140
$ 136,558
$ 18,582

Holding Cost Total cost

$
61,224 $
109,995
$
6,122 $
15,922
$
612 $
10,412
$ 136,558

Subconjunto de lotes seleccionados de productos ordenados y entregados de modo de forma conju

Annual demand for Litepro, DL =
Annual demand for Medpro, DM =
Annual demand for Heavypro, DH =
Product specific ordering cost, sL =
Product specific ordering cost, sM =
Product specific ordering cost, sH =
Unit Cost, CL =
Unit Cost, CM =
Unit Cost, CH =
Common order cost, S =
Holding cost, h =

12,000
1,200
120
$ 1,000
$ 1,000
$ 1,000
$ 500
$ 500
$ 500
$ 4,000
20%

Order selected subsets in each lot (Example 10.5)

Your
Solution
Litepro
Medpro
Heavypro

Optimal
Solution
Litepro
Medpro
Heavypro

Frequency
multiple
0.70
0.10

Frequency
multiple
1/mi
0.50
0.20
Step 1

Litepro
Medpro
Heavypro

11.0
3.5
1.1

# orders
/year
6.00
4.20
0.60

Order Size
Q
2,000
286
200

# orders
/year
n
10.81
5.40
2.16

Order Size
Q
1,110
222 $
56 $

Step 2
24.5
7.7
2.4

Order Cost
$ 30,000
$ 4,200
$ 600

Holding
Order Cost
Cost
Total cost
$ 54,047
$ 55,504 $
109,551
5,400 $ 11,111 $
16,511
2,160 $
2,778 $
4,938
$ 130,998

Step 3

Step 4

mi

n
10.81
5.40
2.16

1
2
5

Holding
Cost
Total cost
$ 100,000 $
130,000
$ 14,286 $
18,486
$ 10,000 $
10,600
$ 159,086

de modo de forma conjunta

Lot Sizing with Multiple Products (Summary)

Annual demand for Litepro, RL =
Annual demand for Medpro, RM =
Annual demand for Heavypro, RH =
Product specific ordering cost, sL =
Product specific ordering cost, sM =

$
$

Product specific ordering cost, sH =

Independent
Ordering
(Ex 7.3)

Simultaneous
Ordering
(Ex 7.4)

Tailored
Aggregation
(Ex 7.5)

12,000
1,200
120
1,000
1,000

Unit Cost, CL =
Unit Cost, CM =
Unit Cost, CH =
Common order cost, S =

1,000 Holding cost, h =

Q
1,095
346
110

$
$
$
$

500.00
500.00
500.00
4,000
20%

Litepro
Medpro
Heavypro

n
11.0
3.5
1.1

Order Cost
$
54,772
$
17,321
$
5,477

Holding Cost Total cost

$ 54,772 $
109,545
$ 17,321 $
34,641
$
5,477 $
10,954
$
155,140

Litepro
Medpro
Heavypro

n
9.8
9.8
9.8

Q
Order Cost
1,230 $
48,771
123 $
9,754
12.3 $
9,754

Holding Cost Total cost

$ 61,512 $
110,283
$
6,151 $
15,905
$
615 $
10,369
$
136,558

Litepro
Medpro
Heavypro

n
10.8
5.4
2.2

Holding
Q
Order Cost
Cost
Total cost
1,110 $
54,047 $ 55,507 $
109,554
222 $
5,405 $
11,101 $
16,506
55.5 $
2,162 $
2,775 $
4,937
$
130,998

Inventory

Economic Order Quantity Model

Enter the data in the shaded area

Data
Demand rate, D
Ordering/Setup cost, S
Holding cost, H
Unit Price, P

12000
Factor de Incremento de la Demanda
4000
20% (percentage)
500

Results
Optimal Order Quantity, Q*
Maximum Inventory
Average Inventory
Number of Orders

980
980
490
12

Holding cost
Order cost

$48,989.79
$48,989.79

Unit costs
Total cost, Tc

$6,000,000.00
$6,097,979.59

COST TABLE

Start at

980 1960
1960

Factor de Incremento del Lote

12

122.4744871 Increment by 40.82482905

Q
Setup/Order coHolding cost Total cost
122.4744871
###
###
###
163.29931615
###
###
###
204.1241452
###
###
###
244.94897425
###
###
###
285.7738033
###
###
###
326.59863235
###
###
###
367.4234614
###
###
###
408.24829045
###
###
###
449.0731195
###
###
###
489.89794855
###
###
###
530.7227776
###
###
###
571.54760665
###
###
###
612.3724357
###
###
###
653.19726475
###
###
###

694.0220938
734.84692285
775.6717519
816.49658095
857.32141
898.14623905
938.9710681
979.795897149999
1020.6207262
1061.44555525

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### 42866.0705
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mento de la Demanda

k=

actor de Incremento del Lote

k=