12. Graphic presentation of ‘Q’ Model E O Q RE-ORDER LEVEL BUFFER STOCK MAXIMUM LEVEL MINIMUM LEVEL E G I N V E N T O R Y TIME PERIOD K A B C D
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15. Example: Q. Calculate the economic order quantity if annual demand for the product is 5,000 unit. The ordering cost is Rs 30 per order and holding cost is Rs 6/- per unit per annual. Sol:- Given R=5000 unit Cp= Rs. 30 Ch=Rs. 6 Now, _____ EOQ = J ( 2RCp/ CH) _____ = J(2*5000*30/6) ______ = J 5000 = 224 or 22.5 units.
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19. Graphical Presentation of ‘P’ Model Q U A L I T Y UNITS OF STOCK Replenishment level R1 15 days Y1 Y2 Y3 R3 R1 G S3 R2 S2 S1 S2 R2 R3 S3