The annual demand for a component is 7500 units. The carrying cost is Rs.600/unit/year,the ordering cost is Rs.1600 per order and the shortage cost is Rs.2200/unit/year.
Data available
Demand D = 7500 Units/year, 650 Units/month
Carrying cost C1 = 600/Unit /Year
Holding cost C2 = 1600/Per Order/Year
Shortage cost C3 = 2200/Unit/Year
Find the following;
1) Optimal values of economic order quantity
2) Maximum inventory
3) Maximum shortage quantity
4) Cycle time
5) Inventory period
LECTURE 16
Question#2
Find Percentage of cumulative Annual Usage by using ABC analysis.
|
Items.
|
Annual usage
|
Rank
|
Cumulative annual usage
|
% of cumulative annual usage
|
|
1
|
3000
|
1
|
3000
|
24% |
|
2
|
1250
|
5
|
5400
|
42% |
|
3
|
2400
|
2
|
7800
|
61% |
|
4
|
960
|
6
|
9300
|
73% |
|
5
|
2400
|
3
|
10550
|
83% |
|
6
|
700
|
7
|
11510
|
91% |
|
7
|
500
|
8
|
12210
|
96% |
|
8
|
1500
|
4
|
12710
|
100% |
