Scribd
Upload
2 views4 pages

Lab - Work 3333

The document outlines a laboratory class focused on inventory management strategies, detailing tasks such as simulating random demand variables and analyzing the impact of order volume on costs. It provides initial data for calculations, methods for generating random demand using Excel, and formulas for calculating total costs associated with inventory shortages and surpluses. The conclusion emphasizes the relationship between order volume and total costs, identifying an optimal order size that minimizes expenses.

Uploaded by

oleksandra.lipatova
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
2 views4 pages

Lab - Work 3333

The document outlines a laboratory class focused on inventory management strategies, detailing tasks such as simulating random demand variables and analyzing the impact of order volume on costs. It provides initial data for calculations, methods for generating random demand using Excel, and formulas for calculating total costs associated with inventory shortages and surpluses. The conclusion emphasizes the relationship between order volume and total costs, identifying an optimal order size that minimizes expenses.

Uploaded by

oleksandra.lipatova
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Lipatova Oleksanrda

MT-304БА
Record book =14
Laboratory Class #3 i=4
INVENTORY MANAGEMENT STRATEGY j=1

Objective is to get acquainted with the strategies of inventory management.

Task
1. Simulate random demand variables.
2. Determine the size of the order of the batch of goods for the period of time.
3. Investigate the impact of the ordered volume of the batch of goods on costs.
4. Draw conclusions.

Initial data
The initial data are presented in table 3.1. The output data option is calculated
using the last digit of the scorebook or student ticket - i, and the penultimate digit of
the scorebook or student ticket - j.

Table 3.1 – Source data


Indicator Value
Cost of storage of 1 ton of material flow,
Ch= 64
hryvnias/t
Cost of shortage of 1t of material flow,
CD= 155
hryvnias/t
Volume of the order, i.e Part = 50
The average value of demand, i.e MC= 36
Mean square deviation (MSD), i.e MC= 36

Stages of execution
1. Simulate (generate) random demand values.
2. Calculate costs for this demand.
3 Determine the size of the order of a batch of goods ( Part ) for a period of time,
if it is known that the demand D is a random variable with a normal distribution law
(the average value of consumption is MC , the mean square deviation is SC ).
4. Investigate the effect of the ordered volume of the batch of goods on costs,
assuming the following parameter values: 30, 40, 50, 60, 70, 80, 90 tons.
5. Draw conclusions.

Methodical recommendations for work performance

1. Modeling (generation) of random demand values is done using Excel.


Microsoft Excel provides extensive mathematical capabilities, including the ability to
use the random variable distribution function.
The SLCHIS() function, which has no arguments, is written in the table cell as
follows:
" =SLCHIS() "
This function generates a random value from 0 to 1, but with its help it is
possible to get any random value in any interval.

For example : 1. A random value from – 25 to +25: “=50*(SLCHIS()-0.5)”.


A random value between 100 and 150: "=50*SLCHIS()+100"
So, on the basis of examples, the amount of demand is generated according to
the method of modeling a random variable with a normal distribution law for periods
(the resulting value is rounded):

D11
=INTEGRATE($D$6+$D$7*((SLNUM()+SLNUM()+SLNUM()+SLNUM()+SLNUM()++SLNUM
()+SLNUM()+SLNUM()+SLNUM() +SLCIS()+SLCIS()+SLCIS())-6))

The obtained values should be placed in table 3.2.

Table 3.2 – Calculation of random demand


Period Demand, i.e
1 23
… …
15 37

The obtained values will be used when calculating costs for different batches of
the order.
2. Calculate costs for this demand.
When calculating costs, depend on the batch of cargo that is ordered and the
batch of cargo that must be sold in the period. Therefore, it is necessary to create a
table (only visually), in which in one column (or row) it is necessary to list, starting
from the second row, the values of the volume of the ordered batch (30, 40, 50, 60, 70,
80, 90 tons), the figure 3.1 (in the example – F10: G17).
Figure 3.1 – Record in the table of initial data

Next, you need to calculate the costs for the shortage and surplus of the order.
In that case, if the demand is less than the lot that was ordered, then the costs will
be:
C=64*(50-36)=896
where C h is the storage cost of a product unit, hryvnias.
If the ordered lot is not enough to meet demand, the costs will include shortage
costs
C=155*(36-50)=-2170
where C d is the penalty for the shortage of a product unit, hryvnias.
In the process of simulation, it is necessary to estimate the total costs
corresponding to the selected volume of the order. Get an analytical solution to this
problem.
Calculation of total costs:

where p(D) is the probability that demand will take value.


Expenses are calculated according to the formulas described above:
D11 =IF(C11<$D$5;$D$3*($D$5-C11);$D$4*(C11-$D$5)).

InC=64*
the cell above and to 14*1234,22=3784118,52
14*1234,22+155* the right, the address of the simulation result is written
(Fig. 3.1), which is affected by the listed values (in this case, it is the average costs,
i.e. G10 = D27). With its help, you can study the influence of various parameters on
the simulation result.
5. Draw conclusions.

In this laboratory work, we will find out how the order volume of a product affects the overall
costs associated with scarcity and storage.

We used the following methods to create a model to predict random demand values that are
distributed according to the normal law, as well as calculate costs for a deficit and an order
surplus. Using the" wildcard table " in Excel to study the impact of different order volume
values on total costs.
We can also conclude that total costs vary depending on the volume of the product order,
and there is also an optimal order size at which total costs are the lowest.

Figure 3.6 – Study of the influence of the volume of the ordered batch on the average
costs

Knowledge test questions:


1. What are the inventory management strategies?
2. What is the essence of the one-period inventory management model?
3. Explain how inventory shortage affects total costs. Give examples.
4. Which situation occurs most often: lack of goods or its excess?

Literature:
Methodological guidelines for independent work and conducting practical classes in
the academic discipline "Theory of reserves" (for full-time and part-time students of
specialties 7.03060107, 8.03060107 - Logistics (073 - Management. Logistics),
7.03060107, 8.07010101 - Transport systems (275 - Transport technologies) ) /
Kharkiv. national _ city university _ farm named after O. M. Beketova; arrangement:
A. S. Galkin. – Kharkiv: XNUMX named after O. M. Beketova, 2016. – 48 p.

You might also like