Spare Part Inventory Analysis Report

3Yrs
Annual
Cons.

StLoc.
1
Material #

000139706

Material Description

ACTUATOR,REMOTE,RA32747,ANSUL

Unit Price

CAD

Plant

0611

CR-MINE

Average
Annual Reorder Point
Cons.

Maximum
SoH
Level

349.94

Lead Time in Days

Planned Delivery Lead
Time

GR Processing
Lead Time

32

Material Consumption for Past 5 Years or 60 Months

000139706

1.5

1
0.5

0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
2015-12 2015-09 2015-06 2015-03 2014-12
-0.5

0 0 0 0 0 0 0 0 0 0 0
2014-09

2014-06

2014-03

2013-12

0 0 0 0 0 0 0 0 0 0 0 0
2013-09

2013-06

2013-03

2012-12

2012-09

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2012-06

2012-03

2011-12

2011-09

2011-06

2011-03

-1
-1

-1.5

Annual demand

Service Level

95%

Service Level 95%

Per Order cost

Fixed Cost

SL Factor

1.64

Risk of a StockOut 5%

Holding Cost /Unit/Year

25 % of the Unit Price

Economic Order Quantity

Normal Distribution- Curve

EOQ Model

20

95%
Service Level
95%

68%

EOQ
Total Holding Cost
Total Ordering Cost
Total Cost

18
16

Risk of a
StockOut 5%

14

Cost ($)

12
10
8
6
4

$0.0

2
0
0.1%

0.6%

2.3%

6.7%

15.9%

30.9%

50.0%

69.1%

84.1%

93.3%

97.7%

99.4%

99.9%

50

100

150

Percentile

200

250

300

350

Order Quantity

Safety Stock (SS)

Demand During Lead Time

Reorder Point (RoP)

Economic Order Qty (EoQ)

EOQ = Economic order quantity

IOC
Co = Cost of procurement
Stock On Hand
EXISTING MIN
S = Annual usage
Cm = Annual carrying costs
2
0
U = Cost of the item.
DDL = Demand during Lead Time or working stock.
CAD
699.88 CAD
S = Annual usage of the item (demand)
LT = Lead time in days.
Movement Type
SS = Safety stock.
Ranking
SD = Standard deviation of monthly demand.
SL = Standard deviation of Lead-time.
Lead Time Ranking
SL Factor = The normal distribution value which yields the desired service level factor

Unit Cost Ranking

Recommended MIN_MAX

IOC
EXISTING MAX

SKF MIN

SKF MAX

CAD

CAD

CAD

SKF Remarks

NO STOCK SUGGESTED,
EXISTING MIN-MAX RETAINED