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ITEM
P0110
P0X
P0Y
P1X1
P1X2
ITEM
P0110
P0X
P0Y
P1X1
P1X2
WEEKLY NET REQUIREMENTS
Trial lot size
Carrying cost
No. of setups
Setup cost
Total cost
Product
P0110
P0X
P0Y
P1X1
WEEK
ITEM NO
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P1x2
Product
P0110
P0X
P0Y
P1X1
P1x2
Product
P0110
P0X
P0Y
P1X1
P1x2
Lot for lot incurs the maximum
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P0110 1
POX 2
POY 2
P1X1 4
P1X2 3
COST PER UNIT SET UP COST
200 500
65 400
35 350
5 430
15 400
INVENTORY
240
500
340
500
600
400 350
400 750
1380 1380
7 4
3500 2000
4880 3380
Demand On hand
3000 240
5520 500
5520 340
20080 500
1 2
Lot for lot
PART NO QTY
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15060 600
Demand OHI
3000 240
5520 500
5520 340
20080 500
15060 600
Demand OHI
3000 240
5520 500
5520 340
20080 500
15060 600
ost where as least cost method is the best suited one. It is better than EOQ model as
cost goes down.
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0 2 240
1 1 500
1 1 340
2 1 500
2 1 600
Carrying cost
1
0.325
0.175
0.025
0.075
300 450 300
1050 1500 1800
1380 1380 1380
3 2 2
1500 1000 1000
2880 2380 2380
Net Demand Costing Setup cost
2760 4000
5020 3200
5180 181300 2800
19580 97900 3440
3 4
LEVEL
5
LEAD TIME ON HAND INVENTORY
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14460 216900 3200
Net Demand Lot size Carrying cost
2760 613 1
5020 1226 0.325
5180 1839 0.175
19580 2452 0.025
14460 1839 0.075
Net Demand Lot size Carrying cost
2760 1000 1
5020 2461.538462 0.325
5180 4000 0.175
19580 34400 0.025
14460 10666.66667 0.075
the lot size increases and hence the setup
EOQ Model
Least cost technique
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613
1,226
1,839
2,452
1,839
450 225 525
2250 2475 3000
1380 1380 1380
2 2 1
1000 1000 500
2380 2380 1880
Total cost
6 7 8
512740
LOT SIZES
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Average Inventory Carrying Costs Setups Setup cost
1380 5 2500
815.75 5 2000
453.25 3 1050
244.75 8 3440
542.25 8 3200
Average Inventory Carrying Costs Setups Setup cost
1380 3 1500
815.75 3 1200
453.25 2 700
244.75 1 430
542.25 2 800
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Costing Total cost
181300
97900
216900
Costing Total cost
181300
97900
216900
504166
511726
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Week -1 0 1 2 3 4 5 6 7
Gross requirements 400 350 300 450 300 450 225
Scheduled receipts
Proj. avail. Balance 240 840 490 190 740 440 990
Net requirements 160 260 10
Planned order receipt 1000 1000 1000
Planned order release 1000 1000 1000
Gross requirements 2000 0 0 2000 0 2000 0 0 0
Scheduled receipts
Proj. avail. Balance 500 962 962 962 1424 1424 1886 1886 1886
Net requirements 1500 1038 576
Planned order receipt 2462 2462 2462
Planned order release 2462 0 2462 2462
Gross requirements 2000 0 0 2000 0 2000 0 0 0
Scheduled receiptsProj. avail. Balance 340 20
Net requirements -20 0 2000 0 2000 0 0 0
Planned order receipt -20 0 2000 0 2000 0 0 0
Planned order release -20 0 2000 0 2000 0 0 0 0
Gross requirements 0 0 9848 0 9848 0 0 0 0
Scheduled receipts
Proj. avail. Balance 500
Net requirements -500 0 9848 0 9848 0 0 0 0
Planned order receipt -500 0 9848 0 9848 0 0 0 0
Planned order release -500 0 9848 0 9848 0 0 0 0 0Gross requirements 0 0 7386 0 7386 0 0 0 0
Scheduled receipts
Proj. avail. Balance 600
Net requirements -600 0 7386 0 7386 0 0 0 0
Planned order receipt -600 0 7386 0 7386 0 0 0 0
Planned order release -600 0 7386 0 7386 0 0 0 0 0
P 1X2 LT=1
OHI = 600
P 0110 LT=2
OHI = 240
P 0X LT=1
OHI = 500
P 0Y LT=1
OHI = 340
P 1X1 LT=1
OHI = 500
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8
525
765 240
Product Lot size
0 P0110 1000
P0X 2461.53846
1886 P0Y 4000
P1X1 34400
P1x2 10666.6667
0
0
0
0
0
0
0
00
0
0
0
Lot Size used here in MRP sheet is accor
Cost Method as it was seen to be best s
case.
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ing to Least
ited for the
