A B C D

D 12000 D 12000 D 12000 D 12000

unit cost 50 unit cost 50 unit cost 50 unit cost 50
H/year 20% H/year 20% H/year 20% H/year 20%
S 4000 S 4000 S 4000 S 4000
Q 3098
Cycle inventory 1549
Flow time 47
Reorder interval 94
 Combined ordering
D 48000
unit cost 50
H/year 20%
S 4000
Q 6197
Cycle inventory 3098
Flow time (days) 24
Reorder interval (days) 47
Q 980 Combined Q 1960
Total Cycle Inventory 1960 For Each Product 490
Cycle inventory for each prod 245
Total Cycle inventory 980
Avg. flow time, inventory holding costs will be reduced
 DL DM DH
Demand Per Year 12000 1200 120
Ordering Cost Fixed 4000 4000 4000
Product Specific Ordering Cost 1000 1000 1000
Holding Cost 0.2 0.2 0.2
Price 500 500 500
EOQ 1095 346 110
No. of orders (1) 10.95 3.46 1.10
Revised EOQ 1095 155 49
No. of orders (2) 10.95 7.75 2.45