ppt课件-chapter12–independentdemandinventorymanagement.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ? Wiley 2010 * Quantity Discount Model Same as the EOQ model, except: Unit price depends upon the quantity ordered The total cost equation becomes: ? Wiley 2010 * Quantity Discount Procedure Calculate the EOQ at the lowest price Determine whether the EOQ is feasible at that price Will the vendor sell that quantity at that price? If yes, stop – if no, continue Check the feasibility of EOQ at the next higher price ? Wiley 2010 * QD Procedure con’t Continue until you identify a feasible EOQ Calculate the total costs (including total item cost) for the feasible EOQ model Calculate the total costs of buying at the minimum quantity required for each of the cheaper unit prices Compare the total cost of each option choose the lowest cost alternative Any other issues to consider? ? Wiley 2010 * Quantity Discount Example: Collin’s Sport store is considering going to a different hat supplier. The present supplier charges $10/hat and requires minimum quantities of 490 hats. The annual demand is 12,000 hats, the ordering cost is $20, and the inventory carrying cost is 20% of the hat cost, a new supplier is offering hats at $9 in lots of 4000. Who should he buy from? EOQ at lowest price $9. Is it feasible? Since the EOQ of 516 is not feasible, calculate the total cost (C) for each price to make the decision 4000 hats at $9 each saves $19,320 annually. Space? ? Wiley 2010 * Why Companies Don’t Always Use Optimal Order Quantity It is not unusual for companies to order less or more than the EOQ for several reasons: They may not have a known uniform demand; Some suppliers have minimum order quantity that are beyond the demand. ? Wiley 2010 * Justifying Smaller Order Quantities JIT or “Lean Systems” would recommend reducing order quantities to the lowest practical levels Benefits from reducing Q’s: Improved customer responsiveness (inventory = Lead time) Reduced Cycle Inventory Reduced raw ma