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Inventory Basic Model

The document provides information on inventory management over a 13 period horizon. It includes the opening inventory, demand per period, ordering quantity, replenishment, and closing inventory. It also includes the total cost, ordering cost, holding cost, cost per bag, and re-stocking level. The holding cost is calculated for each period and totals to Rs. 22,934.34 while the ordering cost is Rs. 972, bringing the total cost to Rs. 23,906.34.

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Niyant Pallan
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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81 views12 pages

Inventory Basic Model

The document provides information on inventory management over a 13 period horizon. It includes the opening inventory, demand per period, ordering quantity, replenishment, and closing inventory. It also includes the total cost, ordering cost, holding cost, cost per bag, and re-stocking level. The holding cost is calculated for each period and totals to Rs. 22,934.34 while the ordering cost is Rs. 972, bringing the total cost to Rs. 23,906.34.

Uploaded by

Niyant Pallan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Demand Per week 90 bags

Cost per order 54 Rs/bag Total Cost = 32111.64


Cost of holding 27.00% Cost of bag Total Ordering Cost = 648
Cost of Hold.per unit 3.159 Rs/bag Total Holding Cost = 31463
Lead time 3 weeks
Cost per bag 11.7 Rs/bag
Opening Inventory 320 bags
Ordering Quantity 400 bags
Lead time stock 270 bags

Opening Order Closing


Period Inventory Consumption Quantity Replenishment Inventory
1 320 90 400 230
2 230 90 - 140
3 140 90 - 50
4 50 90 - 400 360
5 360 90 - - 270
6 270 90 400 - 180
7 180 90 - - 90
8 90 90 - - -
9 - 90 - 400 310
10 310 90 400 - 220
11 220 90 - - 130
12 130 90 - - 40
13 40 90 - 400 350
14 350 90 400 - 260
15 260 90 - - 170
16 170 90 - - 80
17 80 90 - 400 390
18 390 90 - - 300
19 300 90 400 - 210
20 210 90 - - 120
21 120 90 - - 30
22 30 90 - 400 340
23 340 90 400 - 250
24 250 90 - - 160
25 160 90 - - 70
26 70 90 - 400 380
27 380 90 - - 290
28 290 90 400 - 200
29 200 90 - - 110
30 110 90 - - 20
31 20 90 - 400 330
32 330 90 400 - 240
33 240 90 - - 150
34 150 90 - - 60
35 60 90 - 400 370
36 370 90 - - 280
37 280 90 400 - 190
38 190 90 - - 100
39 100 90 - - 10
40 10 90 - 400 320
41 320 90 400 - 230
42 230 90 - - 140
43 140 90 - - 50
44 50 90 - 400 360
45 360 90 - - 270
46 270 90 400 - 180
47 180 90 - - 90
48 90 90 - - -
49 - 90 - 400 310
50 310 90 400 - 220
51 220 90 - - 130
52 130 90 - - 40
Total Cost = 32111.64
Total Ordering Cost = 648
Total Holding Cost = 31463.64

Ordering Pipeline + On
Holding cost cost Total cost Pipeline Hand Quantity
868.73 54 922.73 400 630
584.42 - 584.42 400 540
300.11 - 300.11 400 450
647.60 - 647.60 - 360
995.09 - 995.09 - 270
710.78 54 764.78 400 580
426.47 - 426.47 400 490
142.16 - 142.16 400 400
489.65 - 489.65 - 310
837.14 54 891.14 400 620
552.83 - 552.83 400 530
268.52 - 268.52 400 440
616.01 - 616.01 - 350
963.50 54 1,017.50 400 660
679.19 - 679.19 400 570
394.88 - 394.88 400 480
742.37 - 742.37 - 390
1,089.86 - 1,089.86 - 300
805.55 54 859.55 400 610
521.24 - 521.24 400 520
236.93 - 236.93 400 430
584.42 - 584.42 - 340
931.91 54 985.91 400 650
647.60 - 647.60 400 560
363.29 - 363.29 400 470
710.78 - 710.78 - 380
1,058.27 - 1,058.27 - 290
773.96 54 827.96 400 600
489.65 - 489.65 400 510
205.34 - 205.34 400 420
552.83 - 552.83 - 330
900.32 54 954.32 400 640
616.01 - 616.01 400 550
331.70 - 331.70 400 460
679.19 - 679.19 - 370
1,026.68 - 1,026.68 - 280
742.37 54 796.37 400 590
458.06 - 458.06 400 500
173.75 - 173.75 400 410
521.24 - 521.24 - 320
868.73 54 922.73 400 630
584.42 - 584.42 400 540
300.11 - 300.11 400 450
647.60 - 647.60 - 360
995.09 - 995.09 - 270
710.78 54 764.78 400 580
426.47 - 426.47 400 490
142.16 - 142.16 400 400
489.65 - 489.65 - 310
837.14 54 891.14 400 620
552.83 - 552.83 400 530
268.52 - 268.52 400 440
31,463.64 648 32,111.64
Demand Per week 90 bags
Cost per order 54 Rs/bag Total Cost = 23906.34
Cost of holding 27.00% Cost per bag Total Ordering Cost = 972
Cost of Hold.per unit 3.159 Rs/bag Total Holding Cost = 22934.34
Lead time 3 weeks
Cost per bag 11.7 Rs/bag
Opening Inventory 320 bags
Period of review 3 weeks
Re-Stocking Level 540 bags

Opening Order Closing


Period Inventory Consumption Quantity Replenishment Inventory Holding cost

1 320 90 220 0 230 868.725


2 230 90 0 0 140 584.415
3 140 90 0 0 50 300.105
4 270 90 270 220 180 710.775
5 180 90 0 0 90 426.465
6 90 90 0 0 0 142.155
7 270 90 270 270 180 710.775
8 180 90 0 0 90 426.465
9 90 90 0 0 0 142.155
10 270 90 270 270 180 710.775
11 180 90 0 0 90 426.465
12 90 90 0 0 0 142.155
13 270 90 270 270 180 710.775
14 180 90 0 0 90 426.465
15 90 90 0 0 0 142.155
16 270 90 270 270 180 710.775
17 180 90 0 0 90 426.465
18 90 90 0 0 0 142.155
19 270 90 270 270 180 710.775
20 180 90 0 0 90 426.465
21 90 90 0 0 0 142.155
22 270 90 270 270 180 710.775
23 180 90 0 0 90 426.465
24 90 90 0 0 0 142.155
25 270 90 270 270 180 710.775
26 180 90 0 0 90 426.465
27 90 90 0 0 0 142.155
28 270 90 270 270 180 710.775
29 180 90 0 0 90 426.465
30 90 90 0 0 0 142.155
31 270 90 270 270 180 710.775
32 180 90 0 0 90 426.465
33 90 90 0 0 0 142.155
34 270 90 270 270 180 710.775
35 180 90 0 0 90 426.465
36 90 90 0 0 0 142.155
37 270 90 270 270 180 710.775
38 180 90 0 0 90 426.465
39 90 90 0 0 0 142.155
40 270 90 270 270 180 710.775
41 180 90 0 0 90 426.465
42 90 90 0 0 0 142.155
43 270 90 270 270 180 710.775
44 180 90 0 0 90 426.465
45 90 90 0 0 0 142.155
46 270 90 270 270 180 710.775
47 180 90 0 0 90 426.465
48 90 90 0 0 0 142.155
49 270 90 270 270 180 710.775
50 180 90 0 0 90 426.465
51 90 90 0 0 0 142.155
52 270 90 270 270 180 710.775
22934.34
Cost = 23906.34
rdering Cost = 972
ding Cost = 22934.34

Pipeline + On
Ordering Cost Total Cost Pipeline Hand Quantity

54 922.725 220 540


0 584.415 220 450
0 300.105 220 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
0 426.465 270 450
0 142.155 270 360
54 764.775 270 540
972 23906.34
Demand Per week 90 bags
Cost per order 54 Rs/bag Total Cost = 30744
Cost of holding 27.00% Cost per bag Total Ordering Cost =
Cost of Hold.per unit 3.159 Rs/bag Total Holding Cost = 30
Lead time 3 weeks
Cost per bag 11.7 Rs/bag
Opening Inventory 320 bags
Period of review 4 weeks
Re-Stocking Level 630 bags

Opening Order Closing


Period Inventory Consumption Quantity Replenishment Inventory

1 320 90 310 0 230


2 230 90 0 0 140
3 140 90 0 0 50
4 360 90 0 310 270
5 270 90 360 0 180
6 180 90 0 0 90
7 90 90 0 0 0
8 360 90 0 360 270
9 270 90 360 0 180
10 180 90 0 0 90
11 90 90 0 0 0
12 360 90 0 360 270
13 270 90 360 0 180
14 180 90 0 0 90
15 90 90 0 0 0
16 360 90 0 360 270
17 270 90 360 0 180
18 180 90 0 0 90
19 90 90 0 0 0
20 360 90 0 360 270
21 270 90 360 0 180
22 180 90 0 0 90
23 90 90 0 0 0
24 360 90 0 360 270
25 270 90 360 0 180
26 180 90 0 0 90
27 90 90 0 0 0
28 360 90 0 360 270
29 270 90 360 0 180
30 180 90 0 0 90
31 90 90 0 0 0
32 360 90 0 360 270
33 270 90 360 0 180
34 180 90 0 0 90
35 90 90 0 0 0
36 360 90 0 360 270
37 270 90 360 0 180
38 180 90 0 0 90
39 90 90 0 0 0
40 360 90 0 360 270
41 270 90 360 0 180
42 180 90 0 0 90
43 90 90 0 0 0
44 360 90 0 360 270
45 270 90 360 0 180
46 180 90 0 0 90
47 90 90 0 0 0
48 360 90 0 360 270
49 270 90 360 0 180
50 180 90 0 0 90
51 90 90 0 0 0
52 360 90 0 360 270
Total Cost = 30744.09
Total Ordering Cost = 702
Total Holding Cost = 30042.09

Ordering Pipeline + On Hand


Holding cost Cost Total Cost Pipeline Quantity

868.725 54 922.725 310 630


584.415 0 584.415 310 540
300.105 0 300.105 310 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
710.775 54 764.775 360 630
426.465 0 426.465 360 540
142.155 0 142.155 360 450
995.085 0 995.085 0 360
30042.09 702 30744.09

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