Computing lot-size-related costsAs part of the optimization procedure for logistic parameters, LN calculates the total cost during the optimized period. Note The computation only considers the time period that you specified in the Resource Cost Values (cprao3120m000) session. Calculation TC = ICC + COI + SCN + SCO Where:
Inventory carrying cost ICC = AIL * (IP/100)* C * L Where:
Example: inventory carrying cost Data:
ICC = AIL * (IP/100) * C * L Result of the calculation: ICC = 1620 $ (inventory carrying cost for the period of 30 days) Cost of obsolete items COI = AIL * C * (Ri/100) * L/F Where:
Example: Cost of obsolete items Data:
COI = AIL * C * (Ri/100) * L/F Result of the calculation COI = 810 $ (cost of obsolete items) AIL = D / (2 * F) Where:
Example: average inventory level Data:
If the inventory is replenished once every 30 days, to a level of 48,000 kg, the average level is 24,000 kg. However, if the inventory is replenished 20 times in every 30 days, to a level of 2400 kg, the average level is 1200 kg. AIL = D / (2 * F) Result of the first calculation:
Result of the second calculation: F = 20 AIL = 1200 kg F = D / LS Where:
Setup cost (normal rate) SCN = F * S' * R * (1 + SR/100) Where:
Setup cost (overtime rate) SCO = F * S" * R * (1 + SR/100) * (1 + OR/100) Where:
The result of the computation is displayed in the Plan Items - Optimized Lot Sizes (cprao3110m000) session.
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