Page 275 - DCOM303_DMGT504_OPERATION_RESEARCH

Operations Research

Notes Solution:
Levels X Y Z
ROL = M x C × M (1,000 × 4) = 4,000 (1,500 × 3) = 4,500 (1,200 × 6) = 7,200
x LT
Mn.L = ROL – NC (4,000) – (700 × 3) = 1,900 (4,500) – (900 × 2) = 2,700 (7,200) – (900 × 5) =
x NLT 2,700
Mx.L = ROL + (4,000 + 800) – (400 × 2) = (4,500 + 1,200) – (300 × 1) (7,200 + 1,000) -(600 × 4)
ROQ – Mn.C × 4,000 = 5,400 = 800
Mn.LT
Avg. L = (1,900 + 4,000)/2 =2,950 (2,700 + 5400)/2 = 4,050 (2,700 + 5,800)/2 =4,250
M.L + M x L 800 1,200 1,000
(1,900 + ) =2,300 (2,700 + ) = 3,300 (2,700 + ) = 3,200
2 2 2 2
ML + 1/2 ROQ

Task The following information is available in respect of a particular material:
Reorder Quantity 3,600 units
Max. Consumption 900 units/week

Min. Consumption 300 units/week
Normal Consumption 600 units/week
Reorder Period 3 to 5 weeks
Calculate the following:

(a) ROL (b) Mn.SL
(c) Mx. SL (d) AL

Example: Calculate the following levels:
1. Reorder Level
2. Minimum Stock Level

3. Maximum Level
4. Average Level from the following:
Normal Consumption - 60 units
Minimum Consumption - 20 units
Maximum Consumption - 80 units

Reorder Quantity:
Material X – 400 units
Material Y – 600 units

Reorder period
Material X – 4-6 weeks
Material Y – 2-4 weeks

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