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
251712583138251725016719.8598.421.8928$48,706.2927.58