Managing Inventories

Barte, Roi Albert D.

Air - import Air
Order Qty (Q) - Units 35,000 40,000 45,000 50,000 55,000 60,000

Lead Time between order (Days) of stock 12.59 14.60 15.87 18.25 19.21 21.47
One day stock
Boxes per pallet 32 32 32 32 32 32
Number of pallets 3.65 4.17 4.69 5.21 5.73 6.25
Total Weight 82.23 84.83 87.44 90.04 92.65 95.25

Annual Demand(Q) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Annual Ordering Cost 511,702 442,573 408,144 356,364 339,285 304,856

Service Charge 101,500.00 87,500.00 80,500.00 70,000.00 66,500.00 59,500.00
Total Number of orders 29 25 23 20 19 17

Trucking 246,500 212,500 195,500 170,000 161,500 144,500

Total number of containers 29.00 25.00 23.00 20.00 19.00 17.00
Cost per trip 8,500 8,500 8,500 8,500 8,500 8,500
Forwarding Charges
Air way Bill 75,400 65,000 59,800 52,000 49,400 44,200
THC 7,250.00 6,250.00 5,750.00 5,000.00 4,750.00 4,250.00
Receipted Charge 72,500 62,500 57,500 50,000 47,500 42,500
Freight 8,551.83 8,822.67 9,093.50 9,364.33 9,635.17 9,906.00

Annual Holding Cost 157,500 180,000 202,500 225,000 247,500 270,000

Cost per SQM (P200/SQM/Month) 3600 3600 3600 3600 3600 3600
Needed area per pallet 12 12 12 12 12 12
Required number of Area 44 50 56 63 69 75

Total Cost 669,202 622,573 610,644 581,364 586,785 574,856

 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000

22.81 24.33 26.07 28.08 30.42 30.42 33.18 36.50 36.50

32 32 32 32 32 32 32 32 32
6.77 7.29 7.81 8.33 8.85 9.38 9.90 10.42 10.94
97.85 100.46 103.06 105.67 108.27 110.88 113.48 116.08 118.69

1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

287,777 270,698 253,619 236,539 218,601 219,448 202,301 185,155 185,358

56,000.00 52,500.00 49,000.00 45,500.00 42,000.00 42,000.00 38,500.00 35,000.00 35,000.00
16 15 14 13 12 12 11 10 10

136,000 127,500 119,000 110,500 102,000 102,000 93,500 85,000 85,000

16.00 15.00 14.00 13.00 12.00 12.00 11.00 10.00 10.00
8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500

41,600 39,000 36,400 33,800 31,200 31,200 28,600 26,000 26,000

4,000.00 3,750.00 3,500.00 3,250.00 3,000.00 3,000.00 2,750.00 2,500.00 2,500.00
40,000 37,500 35,000 32,500 30,000 30,000 27,500 25,000 25,000
10,176.83 10,447.67 10,718.50 10,989.33 10,400.69 11,248.25 11,451.38 11,654.50 11,857.63

292,500 315,000 337,500 360,000 382,500 405,000 427,500 450,000 472,500

3600 3600 3600 3600 3600 3600 3600 3600 3600
12 12 12 12 12 12 12 12 12
81 88 94 100 106 113 119 125 131

580,277 585,698 591,119 596,539 601,101 624,448 629,801 635,155 657,858

 110,000 115,000 120,000 125,000 130,000 135,000

36.50 40.56 40.56 45.63 45.63 45.63

32 32 32 32 32 32
11.46 11.98 12.50 13.02 13.54 14.06
121.29 123.90 126.50 129.10 131.71 134.31

1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

185,561 168,414 168,617 151,470 151,673 151,876

35,000.00 31,500.00 31,500.00 28,000.00 28,000.00 28,000.00
10 9 9 8 8 8

85,000 76,500 76,500 68,000 68,000 68,000

10.00 9.00 9.00 8.00 8.00 8.00
8,500 8,500 8,500 8,500 8,500 8,500

26,000 23,400 23,400 20,800 20,800 20,800

2,500.00 2,250.00 2,250.00 2,000.00 2,000.00 2,000.00
25,000 22,500 22,500 20,000 20,000 20,000
12,060.75 12,263.88 12,467.00 12,670.13 12,873.25 13,076.38

495,000 517,500 540,000 562,500 585,000 607,500

3600 3600 3600 3600 3600 3600
12 12 12 12 12 12
138 144 150 156 163 169

680,561 685,914 708,617 713,970 736,673 759,376