a) Determine the economic order quantity. b) Consider that a service level of 85% (Z=1.036) is to be ensured using a continuous review inventory management policy of continuous review. Determine: i. The order point. ii. The economic order quantity considering stock-outs.
In the last 12 months the quantities shown in
Table 1 of light vehicles of a brand "R" were sold in the national territory.
The selling price of each R vehicle is 12590€. The production cost
(including raw material cost) of one is 7730€. The company uses
own transportation to transport the vehicles worth 420€, and
given the distance to the factory, takes on average, 8
days, with a standard deviation of 2 days. Storage until sale
is estimated at 150€/unit.year. The company
financial loans at an annual rate of 2.2%. Consider that a
year has 264 working days.
a) Determine the economic order quantity.
b) Consider that a service level of 85% (Z=1.036) is to be ensured using a continuous review
inventory management policy of continuous review. Determine:
i. The order point.
ii. The economic order quantity considering stock-outs.
| Month | Sales | Month | Sales |
|
1 |
2235 | 7 | 3078 |
| 2 | 3206 | 8 | 2366 |
| 3 | 4298 | 9 | 1966 |
| 4 | 3309 | 10 | 2149 |
| 5 | 3640 | 11 | 2387 |
| 6 | 4038 | 12 | 2492 |
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