Exercise 1 Exercise 2

Order size
Quantity Required 220 3000 (EOQ)
Ordering cost 270 300 3
Cost per unit 4000 250 4
Cost of capital 12% 8% 5
Average Consumption 10 6
Minimum Consumption 6 7
Maximum Consumption 13 8
Minimum Days 12 9
Maximum Days 20 10
Average Days 15 11
12
EOQ 15.73 300.00 13
Reorder Level 260.00 14
Minimum Level 110.00 15
Safety Level 72.00 16
Maximum Level 338.00 17
18
19
20
21
22
23
24
25
26
27
28
29
30

Order size
(EOQ)
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000
 Exercise 1
Number of Ordering Cost Carrying Cost Total Cost
Orders
73.33 19800.00 720.00 20520.00
55.00 14850.00 960.00 15810.00
44.00 11880.00 1200.00 13080.00
36.67 9900.00 1440.00 11340.00
31.43 8485.71 1680.00 10165.71
27.50 7425.00 1920.00 9345.00
24.44 6600.00 2160.00 8760.00
22.00 5940.00 2400.00 8340.00
20.00 5400.00 2640.00 8040.00
18.33 4950.00 2880.00 7830.00
16.92 4569.23 3120.00 7689.23
15.71 4242.86 3360.00 7602.86
14.67 3960.00 3600.00 7560.00
13.75 3712.50 3840.00 7552.50
12.94 3494.12 4080.00 7574.12
12.22 3300.00 4320.00 7620.00
11.58 3126.32 4560.00 7686.32
11.00 2970.00 4800.00 7770.00
10.48 2828.57 5040.00 7868.57
10.00 2700.00 5280.00 7980.00
9.57 2582.61 5520.00 8102.61
9.17 2475.00 5760.00 8235.00
8.80 2376.00 6000.00 8376.00
8.46 2284.62 6240.00 8524.62
8.15 2200.00 6480.00 8680.00
7.86 2121.43 6720.00 8841.43
7.59 2048.28 6960.00 9008.28
7.33 1980.00 7200.00 9180.00

Exercise 2
Number of Ordering Cost Carrying Cost Total Cost
Orders
60.00 18000.00 500.00 18500.00
30.00 9000.00 1000.00 10000.00
20.00 6000.00 1500.00 7500.00
15.00 4500.00 2000.00 6500.00
12.00 3600.00 2500.00 6100.00
10.00 3000.00 3000.00 6000.00
8.57 2571.43 3500.00 6071.43
7.50 2250.00 4000.00 6250.00
6.67 2000.00 4500.00 6500.00
6.00 1800.00 5000.00 6800.00
5.45 1636.36 5500.00 7136.36
5.00 1500.00 6000.00 7500.00
4.62 1384.62 6500.00 7884.62
4.29 1285.71 7000.00 8285.71
4.00 1200.00 7500.00 8700.00
3.75 1125.00 8000.00 9125.00
3.53 1058.82 8500.00 9558.82
3.33 1000.00 9000.00 10000.00
3.16 947.37 9500.00 10447.37
3.00 900.00 10000.00 10900.00