Jan.

Feb Mar Apr May Jun Jul

Aba, China 61 176 1,544 1,714 1,297 1,018 1,750
Bazhong, China 4,656 9,395 6,292 1,993 874 2,790 3,883
Chengdu, China 16,360 30,961 60,936 62,496 723 44,574 47,859
Dazhou, China 4,597 6,000 10,139 10,794 5,679 6,454 7,212
Deyang, China 2,841 3,621 9,376 9,678 2,814 4,746 6,886
Ganzi, China 774 774 983 2,304 1,814 240 55
Guang'an, China 1,851 5,396 11,630 8,325 1,749 3,185 5,930
Guangyuan, China 2,936 9,165 8,950 4,311 4,871 4,463 4,240
Leshan, China 6,678 12,456 11,905 9,706 2,963 6,700 10,315
Liangshan, China 2,329 4,577 4,602 4,837 178 4,525 5,721
Luzhou, China 6,731 12,277 10,613 7,812 1,220 7,058 7,385
Meishan, China - 10,400 10,400 3,554 5,002 4,277 5,348
Mianyana, China 200 26,558 15,833 16,930 19,946 568 5,730
Nanchong, China 2,392 6,319 35,995 19,330 7,032 7,367 10,012
Neijiang, China 3,374 10,066 9,418 3,961 1,721 4,718 3,906
Panzhihua, China 1,475 3,192 2,386 763 1,006 2,773 3,805
Suining, China 4,726 8,595 7,472 3,978 3,761 4,261 5,625
Ya'an, China 2,195 4,584 4,620 2,817 1,042 2,446 3,095
Yibin, China 9,571 17,742 15,000 9,131 1,597 7,877 10,624
Zigong, China 1,550 5,992 10,835 9,136 3,712 4,410 6,128
Ziyang, China 3,010 3,261 5,050 6,421 5,051 3,286 4,030
Total 78,307 191,507 253,979 199,991 74,052 127,736 159,539

Aba, China 13,873

Bazhong, China 44,116
Chengdu, China 420,997
Dazhou, China 77,044
Deyang, China 67,959
Ganzi, China 11,684
Guang'an, China 54,260
Guangyuan, China 47,000
Leshan, China 85,401
Liangshan, China 46,290
Luzhou, China 80,541
Meishan, China 56,466
Mianyana, China 96,327
Nanchong, China 103,211
Neijiang, China 56,190
Panzhihua, China 25,410
Suining, China 56,257
Ya'an, China 31,665
Yibin, China 86,374
Zigong, China 62,124
Ziyang, China 40,955
Total 1,564,144
 Monthly Daily
Aug Sep Oct Nov Dec Total Average STDV Average
1,607 2,428 690 563 1,025 13,873
3,614 2,853 2,326 3,040 2,400 44,116
51,302 51,315 45,317 8,353 801 420,997
7,607 5,725 6,811 5,246 780 77,044
5,502 5,691 4,352 5,847 6,605 67,959
1,070 860 200 950 1,660 11,684
4,148 2,526 3,791 2,817 2,912 54,260
2,814 1,007 1,427 1,185 1,631 47,000
8,457 8,049 6,138 1,842 192 85,401
4,305 4,598 4,109 2,756 3,753 46,290
7,054 6,136 5,251 4,517 4,487 80,541
5,342 4,959 3,309 3,497 378 56,466
7,658 391 251 75 2,187 96,327
7,871 2,708 1,321 1,999 865 103,211
5,628 3,624 4,658 2,111 3,005 56,190
2,923 2,833 2,929 555 770 25,410
4,301 5,007 2,807 3,016 2,708 56,257
2,435 2,286 2,437 1,843 1,865 31,665
9,420 3,468 1,448 191 305 86,374
5,134 4,456 4,074 3,482 3,215 62,124
4,224 4,187 2,198 236 1 40,955
152,416 125,107 105,844 54,121 41,545 1,564,144
Daily
STDV
 Yearly Demand
30,000 12,000

25,000 10,000

20,000 8,000

15,000 6,000

10,000 4,000

5,000 2,000

- -
na na na na na na na na na na na na na na na na na na na na na
hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi hi
,C ,C ,C ,C g ,C i ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C ,C
Ab
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 Total floor space of
District warehouse (sq.m.)
Aba, China 1,027
Bazhong, China 1,640
Chenadu, China 9,600
Dazhou, China 4,772
Deyang, China 10,792
Ganzi, China 1,907
Guang'an, China 2,040
Guangyuan, China 1,174
Leshan, China 1,717
Liangshan, China 1,296
Luzhou, China 4,154
Meishan, China 2,672
Mianvana, China 3,840
Nanchong, China 6,742
Neijiang, China 7,802
Panzhihua, China 3,534
Suining, China 1,999
Ya'an, China 3,770
Yibin, China 5,932
Zigong, China 2,600
Ziyang, China 3,272
 Jan. Feb. Mar. Apr. May June July

Aba, China 1,250 2,214 3,063 3,484 2,010 1,513 1,313

Bazhong, China 1,280 1,764 2,999 3,357 1,482 658 670
Chengdu, China 6,195 9,764 17,699 20,579 7,547 8,824 8,926
Dazhou, China 6,551 7,017 10,111 12,352 6,073 944 1,541
Deyang, China 4,646 5,328 5,610 6,820 4,215 1,401 1,349
Ganzi, China 1,303 2,390 3,478 3,553 1,814 - 390
Guang'an, China 655 2,891 5,713 3,013 1,864 355 730
Guangyuan, China 5,052 7,922 9,640 8,945 4,701 1,175 836
Leshan, China 534 3,257 9,403 11,570 5,157 2,194 1,945
Liangshan, China 3,134 3,595 5,693 5,416 1,751 1,573 1,687
Luzhou, China 3,422 4,524 5,280 5,216 2,755 1,535 1,223
Meishan, China 341 511 2,276 3,870 1,915 4,386 2,246
Mianyana, China 5,288 7,932 23,220 26,150 8,218 6,696 6,409
Nanchong, China 4,037 3,031 5,962 8,673 3,724 2,003 644
Neijiang, China 9,364 10,073 27,066 28,536 8,468 1,988 1,208
Panzhihua, China 1,299 1,554 1,696 896 105 1,111 837
Suining, China 5,218 6,498 10,305 10,876 4,460 699 938
Ya'an, China 1,782 3,228 4,065 3,555 1,827 1,195 1,128
Yibin, China 3,498 3,799 6,269 7,044 2,825 1,228 952
Zigong, China 4,579 6,428 8,168 10,341 6,312 1,261 672
Ziyang, China 3,256 6,884 14,998 15,486 5,744 2,032 1,269
Aug. Sept. Oct. Nov. Dec. Jan. MAXIMUN
INVENTORY LEVEL
1,175 886 1,525 1,015 1,124 665 3,484
1,122 1,228 1,405 1,199 1,014 2,515 3,357
5,811 6,999 6,348 9,231 891 7,694 20,579
1,075 1,648 3,273 992 1,346 4,396 12,352
1,114 1,587 1,576 1,146 1,818 701 6,820
685 555 595 535 405 545 3,553
570 1,374 1,547 626 1,199 1,557 5,713
1,224 1,070 1,783 1,457 1,407 574 9,640
2,071 2,113 2,012 1,599 1,108 918 11,570
1,626 1,700 1,874 1,131 934 1,920 5,693
1,728 1,354 3,500 2,198 1,411 2,437 5,280
1,078 844 1,555 913 855 690 4,386
2,380 3,162 3,062 3,136 3,366 1,179 26,150
1,708 1,380 1,056 1,508 826 869 8,673
895 1,387 5,986 5,052 4,392 3,527 28,536
1,111 1,414 1,784 1,205 1,270 992 1,784
853 744 926 679 897 917 10,876
1,114 1,139 1,213 686 1,093 1,188 4,065
1,881 807 2,959 3,212 3,212 3,537 7,044
1,133 1,077 1,346 403 259 259 10,341
1,187 1,383 2,479 2,050 2,213 414 15,486
Adel Guitouni
2/26/20

Sichuan Telecom

Inventory Economic Order Quantity Model

Enter
Enter the
the data
data in
in the
the shaded
shaded area
area

Data
Demand rate 1564144
Setup/order cost 5000
Holding cost 25 (fixed amount)
Unit Price 50
Daily demand rate
Lead time in days

Results
Optimal Order Quantity, Q* 25013.1485423167 625657600
Maximum Inventory 25013.1485423167
Average Inventory 12506.5742711584
Number of Orders 62.5328713558

Holding cost $312,664.36

Setup cost $312,664.36

Unit costs $78,207,200.00

Total cost, Tc $78,832,528.71
Reorder Point 0

COST TABLE Start at 6253.2871 Increment by 2084.429

Q Setup cost Holding cost Total cost

6253.2871355792 1250657.4 78166.0891947397 1328823.5
8337.7161807722 937993.07 104221.452259653 1042214.5
10422.1452259653 750394.46 130276.815324566 880671.27
12506.5742711583 625328.71 156332.178389479 781660.89
14591.0033163514 535996.04 182387.541454393 718383.58
16675.4323615445 468996.54 208442.904519306 677439.44
18759.8614067375 416885.81 234498.267584219 651384.08
20844.2904519306 375197.23 260553.630649132 635750.86
22928.7194971236 341088.39 286608.993714045 627697.38
25013.1485423167 312664.36 312664.356778959 625328.71
27097.5775875098 288613.25 338719.719843872 627332.97
29182.0066327028 267998.02 364775.082908785 632773.1
31266.4356778959 250131.49 390830.445973698 640961.93
33350.8647230889 234498.27 416885.809038612 651384.08
35435.293768282 220704.25 442941.172103525 663645.42
 37519.722813475 208442.9 468996.535168438 677439.44
39604.1518586681 197472.23 495051.898233351 692524.12
41688.5809038612 187598.61 521107.261298265 708705.88
43773.0099490542 178665.35 547162.624363178 725827.97
45857.4389942473 170544.19 573217.987428091 743762.18
47941.8680394403 163129.23 599273.350493004 762402.58
50026.2970846334 156332.18 625328.713557917 781660.89
52110.7261298264 150078.89 651384.076622831 801462.97
54195.1551750195 144306.63 677439.439687744 821746.07
 Inventory: Cost vs Quantity
1400000

1200000

1000000

800000

600000
Cost ($)

400000

200000

0
92 22 53 83 14 45 75 06 36 67 98 28 59 89 82 75 81 12 42 73 03 34 64 95
5 57 0 77 5 96 1 15 6 35 1 54 6 73 1 93 7 12 2 31 7 50 2 70 7 89 3 08 6 82 1 34 8 66 3 86 9 05 4 24 9 44 4 63 9 82 5 01
7 13 6 18 22 27 31 36 40 45 49 8 54 7 58 6 63 5 67 72 37 28 85 90 94 99 03 08 12 17
8 1 4 5 7 4 0 3 3 2 6 1 9 0 1 9 4 7 0 3 6 4 29 .7
2
15
1
58
0
00
9
43
8
86
8
29
7
72
6
15
5
3 .2 7 .7 2 .1 6 .5 1 .0 5 .4 9 .8 4 .2 8 .7 3 .1 7 .5 2 .0 6 .4 0 .8 3 5. 19 4. 8. 3. 7. 1. 6. 0. 5.
6 25 8 33 42 50 59 67 75 84 92 01 09 18 26 35 3 54 37
5 6 0 6 8 7 7 8 5 9 4 0 2 1 1 1 9
10 12 14 16 18 20 22 25 27 29 31 33 39 41 43 45 47 50 52 54

Order Quantity (Q)

Setup cost Holding cost Total cost

 Jan. Feb Mar Apr May Jun Jul
Aba, China 61 176 1,544 1,714 1,297 1,018 1,750
Bazhong, China 4,656 9,395 6,292 1,993 874 2,790 3,883
Chengdu, China 16,360 30,961 60,936 62,496 723 44,574 47,859
Dazhou, China 4,597 6,000 10,139 10,794 5,679 6,454 7,212
Deyang, China 2,841 3,621 9,376 9,678 2,814 4,746 6,886
Ganzi, China 774 774 983 2,304 1,814 240 55
Guang'an, China 1,851 5,396 11,630 8,325 1,749 3,185 5,930
Guangyuan, China 2,936 9,165 8,950 4,311 4,871 4,463 4,240
Leshan, China 6,678 12,456 11,905 9,706 2,963 6,700 10,315
Liangshan, China 2,329 4,577 4,602 4,837 178 4,525 5,721
Luzhou, China 6,731 12,277 10,613 7,812 1,220 7,058 7,385
Meishan, China 0 10,400 10,400 3,554 5,002 4,277 5,348
Mianyana, China 200 26,558 15,833 16,930 19,946 568 5,730
Nanchong, China 2,392 6,319 35,995 19,330 7,032 7,367 10,012
Neijiang, China 3,374 10,066 9,418 3,961 1,721 4,718 3,906
Panzhihua, China 1,475 3,192 2,386 763 1,006 2,773 3,805
Suining, China 4,726 8,595 7,472 3,978 3,761 4,261 5,625
Ya'an, China 2,195 4,584 4,620 2,817 1,042 2,446 3,095
Yibin, China 9,571 17,742 15,000 9,131 1,597 7,877 10,624
Zigong, China 1,550 5,992 10,835 9,136 3,712 4,410 6,128
Ziyang, China 3,010 3,261 5,050 6,421 5,051 3,286 4,030
Total 78,307 191,507 253,979 199,991 74,052 127,736 159,539

Numbe
District r of
days
Chengdu, Oeyang, Guang'an,
Leshan, Luzhou. Meishan,
Mianyang, Neijiang, Nanchong, 1
Suining, Ya'an, Yibin, Ziyang,
Zigong
Bazhong, Dazhou, Guangyuan 2
Aba, Ganzi, Lianqshan,
3
Panzhihua

Aba, China 3
Bazhong, China 2
Chengdu, China 1
Dazhou, China 2
Deyang, China 1
Ganzi, China 3
Guang'an, China 1
Guangyuan, China 2
Leshan, China 1
Liangshan, China 3
Luzhou, China 1
Meishan, China 1
Mianyana, China 1
Nanchong, China 1
Neijiang, China 1
Panzhihua, China 3
Suining, China 1
Ya'an, China 1
Yibin, China 1
Zigong, China 1
Ziyang, China 1
 From WH Only
Monthly Monthly Daily Daily
Aug Sep Oct Nov Dec Average STDV Average STDV LeadTime
1,607 2,428 690 563 1,025 0 0 0 0 3
3,614 2,853 2,326 3,040 2,400 0 0 0 0 2
51,302 51,315 45,317 8,353 801 0 0 0 0 1
7,607 5,725 6,811 5,246 780 0 0 0 0 2
5,502 5,691 4,352 5,847 6,605 0 0 0 0 1
1,070 860 200 950 1,660 0 0 0 0 3
4,148 2,526 3,791 2,817 2,912 0 0 0 0 1
2,814 1,007 1,427 1,185 1,631 0 0 0 0 2
8,457 8,049 6,138 1,842 192 0 0 0 0 1
4,305 4,598 4,109 2,756 3,753 0 0 0 0 3
7,054 6,136 5,251 4,517 4,487 0 0 0 0 1
5,342 4,959 3,309 3,497 378 0 0 0 0 1
7,658 391 251 75 2,187 0 0 0 0 1
7,871 2,708 1,321 1,999 865 0 0 0 0 1
5,628 3,624 4,658 2,111 3,005 0 0 0 0 1
2,923 2,833 2,929 555 770 0 0 0 0 3
4,301 5,007 2,807 3,016 2,708 0 0 0 0 1
2,435 2,286 2,437 1,843 1,865 0 0 0 0 1
9,420 3,468 1,448 191 305 0 0 0 0 1
5,134 4,456 4,074 3,482 3,215 0 0 0 0 1
4,224 4,187 2,198 236 1 0 0 0 0 1
152,416 125,107 105,844 54,121 41,545 130,345 61524 4345 2051
rom WH Only
Service Z Safety Stock
Level
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0
99% 2.326 0