Prezentace aplikace PowerPoint

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Deterministic Inventory Models
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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
Basic EOQ Model
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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
Basic Economic Order Quantity Model (EOQ Model)

• How much to order? Optimum quantity

• When to order? Optimum reorder point

• What is the total cost?

• What is the average inventory level?

• What is the maximum inventory level?

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
Basic Economic Order Quantity Model (EOQ Model)
Assumptions

• Single item

• Deterministic demand (static)

• Deterministic lead time (constant)

• Uniform depletion of the inventory

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
Basic Economic Order Quantity Model (EOQ Model)
Assumptions

• Constant order quantity (OQ)

• Purchasing cost is independent of the OQ

• Unit holding cost is independent of the OQ

• No shortages, no surpluses

_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
Basic Economic Order Quantity Model (EOQ Model)
Cycle 1
Cycle 2
Cycle 3
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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Monthly production of beer 4 000 hl

• Filling into glass bottles 25 of production

• Empty bottles stored in plastic cases (20 pcs.)

• Annual holding cost per case 20 CZK

• Ordering cost transportation 11 000 CZK per
  order other 1 000 CZK per order

• Lead time ½ of month

• Objective minimize total annual cost

_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Annual demand

Q 120 000 cases

• Annual holding cost

c1 20 CZK per case

• Ordering cost

c2 12 000 CZK per order

• Lead time

d 1/2 of month 1/24 of year
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Total annual cost

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Order quantity - q

• Maximum inventory level

• Average inventory level

_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Total annual HOLDING cost

• Total annual ORDERING cost

_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Total annual cost

_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
Policy I Policy II Policy III
Annual demand Q 120 000 120 000 120 000
Order quantity q 10 000 60 000 120 000
Annual unit holding cost c1 20 20 20
Average inventory level q/2 5 000 30 000 60 000
Total annual holding cost HC 100 000 600 000 1 200 000
Unit ordering cost c2 12 000 12 000 12 000
Number of orders Q/q 12 2 1
Total annual ordering cost OC 144 000 24 000 12 000
Total annual cost TC 244 000 624 000 1 212 000
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Optimum order quantity

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery

• Optimum total annual cost

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry
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EOQ Model
Example Brewery

• Optimum length of inventory cycle

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
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____________________________ Quantitative
Methods of Management ? Jan Fábry
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EOQ Model
Example Brewery

• Optimum reorder point

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____________________________ Quantitative
Methods of Management ? Jan Fábry
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Deterministic Inventory Models
EOQ Model
Example Brewery
d gt t
_______________________________________________
____________________________ Quantitative
Methods of Management ? Jan Fábry