separate
Lot Sizing with Multiple Products Ordered and Delivered Separately
Annual demand for A, DA = 20,000
Annual demand for B, DB = 2,500
Annual demand for C, DC = 900
Product specific ordering cost, sA = 100$
Product specific ordering cost, sB = 100$
Product specific ordering cost, sC = 100$
Unit Cost, CA = 5.00$
Unit Cost, CB = 4.00$
Unit Cost, CC = 5.00$
Common order cost, S = 400$
Holding cost, h = 20%
Order Each Product Independently
# orders/year EOQ Order Cost Holding Cost Total Cost
A4.5 4,472 2,236$ 2,236$ 4,472$
B1.4 1,768 707$ 707$ 1,414$
C0.9 949 474$ 474$ 949$
6,835$
all-together
Lot Sizing with Multiple Products Ordered and Delivered Together
Annual demand for A, DA = 20,000
Annual demand for B, DB = 2,500
Annual demand for C, DC = 900
Product specific ordering cost, sA = 100$
Product specific ordering cost, sB = 100$
Product specific ordering cost, sC = 100$
Unit Cost, CA = 5$
Unit Cost, CB = 4$
Unit Cost, CC = 5$
Common order cost, S = 400$
Holding cost, h = 20%
Order All Products Simultaneously
# orders/year Order Size Order Cost Holding Cost Total Cost
A4.0 4,945 2,022$ 2,473$ 4,495$
B4.0 618 404$ 247$ 652$
C4.0 222.5 404$ 111$ 516$
5,662$
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