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OBJECTIVE
Minimize the total inventory investment while keeping
- The Order Frequency less than or equal to 20
- The Aggregate Fill Rate to greater than or equal to 0.98
by adjusting the Reorder Points and Reorder Quantities

ID	Part Name	Cost ($/unit)	Demand (units/year)	Lead Time (days)	Average Lead Time Demand (units)	Standard Deviation Lead Time Demand (units)	Reorder Quantity (units)	Reorder Point (units)	Order Frequency (no/year)	Fill Rate (%)	Backorder Level (units)	Inventory Investment ($)	Stockouts per Year (no/year)

1	4X8 3/4" Ash				16.44	4.05			4.00	0.9459	0.1311	$1,319.27	5.41
2	2X12 10' Pine				41.10	6.41			4.00	1.0000	0.0000	$26,101.03	0.00
3	2X4 Stud Bndl				13.70	3.70			3.85	0.5566	1.7617	$51.26	22.17
4	4X8 1/4" Util				4.11	2.03			4.00	1.0000	0.0000	$253.90	0.00
5	1X4 10' Pine				82.19	9.07			4.00	1.0000	0.0000	$20,980.82	0.00

SUMMARY			1750						19.85	98.42%	1.8928	$48,706.29	27.58

Results

Item 1 ROQ	Item 1 ROP	Item 2 ROQ	Item 2 ROP	Item 3 ROQ	Item 3 ROP	Item 4 ROQ	Item 4 ROP	Item 5 ROQ	Item 5 ROP	Order Frequency	Fill Rate	Backorder Level	Inventory Investment	Stockout per Investment
25	17	125	83	13	8	25	17	250	167	19.85	98.42	1.8928	$48,706.29	27.58