Procurement Management
Procurement Management
Procurement Management
Week Demand Order Size B.I. E.I. Ordering Cost Inventory Holding Cost Order Size B.I. E.I.
1 10 166 166 156 300 322 20 20 10
2 10 0 156 146 0 302 10 0
3 15 0 146 131 0 277 35 35 20
4 20 0 131 111 0 242 20 0
5 70 0 111 41 0 152 250 250 180
6 180 166 207 27 300 234 180 0
7 250 332 360 110 300 469 520 520 270
8 270 166 276 6 300 282 270 0
9 230 332 338 108 300 446 270 270 40
10 40 0 108 68 0 176 40 0
11 0 0 68 68 0 136 10 10 10
12 10 0 68 58 0 126 10 0
Average Dema 92 1500 3166
Ordering Cost ( 300 Total Cost 4666
Inventory
Cost per unit 2
per week ($)
It 60 10 0 80 30 20 0 50 30 0
Qt <= <= <= <= <= <= <= <= <= <=
Yt*M 10000 0 0 10000 0 0 0 10000 0 0
Total Ordering Cost 580
Item On hand Lead time (Weeks) By week 1 Total Requ 95
X 50 2 Firm Order 80
A 75 3 Forecast 15
B 25 1
C 10 2
D 20 2
1 2 3 4 5
X Gross Req
LT=2 Scheduled receipts
Proj. avail bal 50 50 50 50 50
On Net Req
Hand Planned order receipt
50 Planned order release
A Gross Req
LT=3 Scheduled receipts
Proj. avail bal 75 75 75 75 75
On Net Req
Hand Planned order receipt
75 Planned order release 15
B Gross Req
LT=1 Scheduled receipts
Proj. avail bal 25 25 25 25 25
On Net Req
Hand Planned order receipt
25 Planned order release
C Gross Req
LT=2 Scheduled receipts
Proj. avail bal 10 10 10 10 10
On Net Req
Hand Planned order receipt
10 Planned order release 30
D Gross Req 150
LT=2 Scheduled receipts
Proj. avail bal 20 20 20 20 20
On Net Req 130
Hand Planned order receipt 130
20 Planned order release 130
6 7 8 9 10
95
50 50 50 50 50
45
45
45
90
75 75 75
15
15
45
25 25 25
20
20
20
40
10 10
30
30
Items LT (Weeks) Total Unit Demand
A A 1 Day 10 50 A
B(4) D(2) B 2 Day 8 20 B (Spares)
E(1) C 1 Day 6 15 D (Spares)
C(2) D(3) D 3
F(2) E 4
F 1
1 2 3 4 5 6 7 8
A Gross Req
LT=1 Scheduled receipts
Proj. avail bal
Net Req
Planned order receipt
Planned order release 50
B Gross Req 90
LT=2 Scheduled receipts
Proj. avail 75 75 75 75 75 75 75 75
Net Req 15
Planned order receipt 15
Planned order release 15
C Gross Req 45
LT=1 Scheduled receipts
Proj. avail 25 25 25 25 25 25 25 25
Net Req 20
Planned order receipt 20
Planned order release 20
D Gross Req 40
LT=3 Scheduled receipts
Proj. avail 10 10 10 10 10 10 10
Net Req 30
On Hand Planned order receipt 30
10 Planned order release 30
E Gross Req 150
LT=4 Scheduled receipts
Proj. avail 20 20 20 20 20
Net Req 130
On Hand Planned order receipt 130
20 Planned order release 130
F Gross Req 150
LT=4 Scheduled receipts
Proj. avail 20 20 20 20 20
Net Req 130
On Hand Planned order receipt 130
20 Planned order release 130
9 10
50
50
50
Week 4 5 6 7 8 9
A Gross Req 5 15 18 8 12 22
LT=1 Scheduled receipts
Proj. avail bal 21 16 1 3 15 3
Q=20 Net Req
S.S =0 Planned order receipt 20 20 20
Planned order release 20 20 20
B Gross Req 40 40 40
LT=2 Scheduled receipts 32 32
Proj. avail bal 20 20 12 12 12 12
Q=40 Net Req
S.S. =0 Planned order receipt 40 0 40
Planned order release 40 40
C Gross Req 40 20 60 0 20 0
LT=1 Scheduled receipts
Q= Lot Proj. avail bal 50 10 10 10 10 10
for Lot Net Req
S.S.=10 Planned order receipt 20 60 20
Planned order release 20 60 20
1