Exercise 11-9
Input
Annual demand for tablets/smartphones, D1120,000
Annual demand for laptops, D248,000
Cost per tablet/smartphone, C1100$
cost per laptop, C2400$
Holding cost, h 25%
Fixed cost per shipment, S 10,000$
Two Products Are Shipped Separately
Optimal order size for tablets/smartphones 9,798
Optimal order frequency for tablets/smartphones 12.25
Cycle inventory of tablets/smartphones 4,898.98
Annual holding cost for tablet 122,474.49$
Annual order cost for tablets 122,474.49$
Optimal order size for laptops 3,098
Optimal order frequency for laptops 15.49
Cycle inventory of laptops 1,549.19
Annual holding cost for laptops 154,919.33$
Annual order cost for laptops 154,919.33$
Total annual cost 554,787.64$
Two Products Are Shipped Jointly
Optimal order frequency (Equation 11.7), n*19.75
Order size for tablets/smartphones 6,076
Cycle inventory of tablets 3,038.22
Annual holding cost for tablets 75,955.45$
Order size for laptops 2,431
Cycle inventory of laptops 1,215.29
Annual holding cost for laptops 121,528.72$
Annual order cost 197,484.18$
Total annual cost 394,968.35$
Annual savings through aggregation 159,819.29$