Assignment 8.2 Quality control & inventory management
Demand table for both EG151 & BD032
1. Table regarding EOQ (Hint in the manual)
Actual Demand
Week EG151 DB032
1 104 - Actual demand
2 103 - # of orders
3 107 - Units per order
4 105 - Average inventory
5 102 - Ordering costs
6 102 - Carrying costs
7 101 - Total costs
8 104 -
9 100 -
10 100 - Costs current strategy
11 103 18 Costs new strategy
12 97 33 Savings ($)
13 99 53 Savings (%)
14 102 54
15 99 51
16 103 53
17 101 50 2. ROP
18 101 53 Average lead demand
19 104 54 SD
20 108 49 Safety Stock
21 97 52 ROP
Average weekly demand 102 52.1111111 Or ROP
Annual demand 5304 2709.77778
We don't use 18 & 33 since they aren't representive
EG151 DB032
Lot size 150 1000
Lead time 2 3
Wholesale Price $ 12.99 $ 8.89
Gross margin 32% 48%
Cost of holding inventory 21% 21%
Out-of-pocket costs $ 20.00 $ 10.00
Flat Fee $ 21.40 $ 21.40
Backorder 11 0
schedule receipt 0 0
Units on hand 0 324
COGS $ 8.83 $ 4.62
Inventory holding cost $ 1.85 $ 0.97
Cycle service goal 95% 1.645 z-score can be found in the z table
