DA NANG UNIVERSITY OF ECONOMIC

SUNDERLAND UNIVERSITY PROGRAMME

My name: Nguyen Le Thuc Nhi ( Sa)

SUD10

Table of Contents
I. Introduction ................................................................................................................................. 3
II. Memorandum ............................................................................................................................. 4
III. Forecasting Techniques: ........................................................................................................... 5
3.1. Additive method ................................................................................................................... 5
3.2 Multiplicative method ........................................................................................................... 7
3.3 Accuracy of forecasting methods .......................................................................................... 9
3.4 Recommendation. ................................................................................................................ 12
3.5 Management Information Systems...................................................................................... 13
3.6 Inventory Control ................................................................................................................ 14
3.6.2 Discounted Economic Order Quantity ............................................................................. 17
3.7 Material Requirement Planning (MRP) .............................................................................. 20
3.8 Project Management Plan.................................................................................................... 21
3.9 Investment Appraisal........................................................................................................... 22
IV. Conclusion .............................................................................................................................. 28
V. References: ............................................................................................................................... 29
VI. Appendices: ............................................................................................................................ 30
Appendix1: ................................................................................................................................ 30
Appendix 2: ............................................................................................................................... 31
Appendix 3 ................................................................................................................................ 48
Appendix 4 ................................................................................................................................ 50

I. Introduction

I am working as marketing manager under supervision of Mr. Tuan, Director of

marketing department. My company is Da Nang Furniture Company Limited (DFC) is a young
SME firm which manufactures furniture for domestic and overseas markets. DFC markets its
products not only in Vietnam, but also in foreign markets such as EU, North America, Japan, and
Southeast Asia. With the high technologies, high quality finishing, safety standard and it is
becoming the best choice for customer, so the demand of DFC products is growing rapidly.
Besides that, the main materials are purchased from Vietnam and neighboring countries - Laos
and Cambodia. This is the reason why the company has to calculate carefully in order to achieve
its competitive advantage.
In this report, I will show about the forecasting method. It is the method the company can
use for predicting in next months. Besides that, I will review and evaluate inventory control
systems and prepare a spreadsheet to assist in finding optimized order size for discounted price
range provided by supplier. Then, I will do a Material Requirement Planning (MRP) for all
components using a spreadsheet. To construct a network diagram and determine the expected
completion time together with the critical path as construct a Gantt chart for Planning to
purchase a new product. Moreover, I use NPV (Net Present Value) and IRR (Internal Rate of
Return) methods to evaluate feasibility of proposed investment projects.

II. Memorandum
To

: Mr Tuan - Director, Marketing Department

From

: Sua, Marketing Manager

Subject

: Market Research Report

Date

: 23th May, 2012

Dear Mr Tuan,
I am Sua, I am working as marketing manager. The report will include forecasting, Additive
and Multiplicative, inventory control (Economic Order Quantity), MRP, Project
management, Investment appraisal, MIS methods. After that, I analyzed the forecast error
in each method. It will help you have more detail and easy to calculate about our product.

III. Forecasting Techniques:

This task identifies the relationship between sales and time which can be analyzed so as
to forecast future values for the variable with different methods.
3.1. Additive method

1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1

Adjustment

5 period
Actual data moving
Moving
(Y)
total
Average(T) Y - T
58
57
56
304
60.8
63
302
60.4
70
299
59.8
56
301
60.2
54
305
61
58
304
60.8
67
307
61.4
69
313
62.6
59
317
63.4
60
322
64.4
62
328
65.6
72
330
66
75
61

Period
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr

1st month

2nd month 3rd month 4th month 5th month

-4.8
2.6
10.2
-4.2
-7
-2.8
5.6
6.4
-4.4
-4.4
-3.6
6

-4.8
2.6
10.2
-4.2
-7
-2.8
5.6
6.4
-4.4
-4.4
-3.6
6

Total
Average
seasonal
variation
Adjustment
Adjustment
seasonal
variation

-4.3
0.14

-5.7
0.14

-3.73
0.14

4.73
0.14

8.3
0.14

-0.7
0.7

-4.16

-5.56

-3.59

4.87

8.44

Average rise in trend line =

Averise in
time line

0.47

Actual Sales and forecast ed sales (moving

average-Addtive method
80

75
70

65
60

55
50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

According to the line graph, the sales tend to increase year-by-year. The number of
furniture sales increased into 2011 and 2012 with about over 55,000 units to nearly 61,900 units.
In July, 2011, the number of units for sales is lowest with lower than 55,000 units while in
March, 2012, it is the highest for selling furniture of company with 75,000 units. It means, the
company had good plan for 8months. About forecasting next five months, it can be said that the
sales can be improved with interest in program in autumn. The highest rate can guess over
75,000 units while the lowest just 65,000 units. It is good advantage for sale furniture.
6

3.2 Multiplicative method

Months
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Jan
Feb
mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
mar
Apr

sales (unit)
actual (Y)
58
57
56
63
70
56
54
58
67
69
59
60
62
72
75
61

5months
working
total
sum of 5 Ys

5months
moving
average
(trend= T)

304
302
299
301
305
304
307
313
317
322
328
330

season
variantion
(Y/T)

60.8
60.4
59.8
60.2
61
60.8
61.4
62.6
63.4
64.4
65.6
66

0.92
1.04
1.17
0.93
0.89
0.95
1.09
1.10
0.93
0.93
0.95
1.09

adjustustionment 1st month 2nd month

average sesonal
variation
ajustionment
adjustment
variantion

total

0.93
0.93

3rd month 4th month 5th month

0.92
1.04
1.17
0.89
0.95
1.09
1.10
0.93
0.95
1.09

0.93
1.00

0.91
1.00

0.94
1.00

1.08
1.00

1.14
1.00

0.93

0.91

0.94

1.08

1.14

4.99
1.00
5

Average rise in trend line =

no.of changing
average rise

11.00
0.47

Actual Sales and forecas sales

(Moving average-Multiplicative
method)
80

75
70

65
60
55

Sep

Aug

Jul

Jun

May

Apr

mar

Feb

Jan

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

mar

Feb

Jan

50

The Multiplicative method is very similar to Additive method, except for calculating
seasonal percentage instead of calculating seasonal variation. So, it is the same units for selling.
It is just difference about 0.01. The products will sell in next five months which was forecasted
same Additive method.

3.3 Accuracy of forecasting methods

The table shows the forecast in next five months (Additive method)

Period 3

Period 4

period 5

(Y-T) -S

-3.59
4.87
8.44
-4.16
-5.56
-3.59
4.87
8.44
-4.16
-5.56
-3.59
4.87

total

Month
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep

-1.21
-2.27
1.76
-0.04
-1.44
0.79
0.73
-2.04
-0.24
1.16
-0.01
1.13
12

Trend (T)
66
66.47
66.95
67.42
67.89
68.36
68.84
69.31

Averge
Seasonal
Variation

-5.56
-3.59
4.87
8.44
-4.16

Forcast
error

-0.14

-1.68

The table show forecast error:

Forecast for
actual sales

61.86
64.30
73.24
77.28
65.15

The table shows the forecast in next five months (multiplicative method)

period 3

period 4

period 5

forecast
error

trend (T)
66
66.47
66.95
67.42
67.89
68.36
68.84
69.31

(y/t)-S

0.94
1.08
1.14
0.93
0.91
0.94
1.08
1.14
0.93
0.91
0.94
1.08
1.14
0.93
total

month
Feb
mar
Apr
May
Jun
Jul
Aug
Sep

average
seasonal
forecast
variantion actual sales
1.08
71.09
1.14
75.69
0.93
62.41
0.91
61.36
0.94
63.94
1.08
73.64
1.14
78.38
0.93
64.61

-0.02
-0.03
0.03
0.00
-0.02
0.01
0.01
-0.04
0.00
0.02
0.00
0.01

-0.02
12
-0.002

The table show forecast error:

(Y / T ) S (-0.02)/12
n

10

0.002

The additive method is a good method since that it forecast the sales which are almost
close to the trend. In other words, if the trend line goes up, the forecasted sales will also increase.
The additive it is better because it has smaller Forecasting error It means it will help find the
error clearer and easier to repair the error.

11

3.4 Recommendation.

The additive method is a good method since that it forecast the sales which are almost
close to the trend. In other words, if the trend line goes up, the forecasted sales will also increase.
The additive it is better because it has smaller Forecasting error It means it will help find the
error clearer and easier to repair the error.

12

3.5 Management Information Systems

Since DFCs sales and exports grow, there is an urgent need for effective cooperation and
information sharing among departments. It is increasingly important for DFC employees to
share company information such as production, delivery schedules, sales forecasts, financial
information, inventory, and labor requirement across the departments - production, marketing,
finance and export. Currently, all the departments share the information using paper-based
reports and memorandum. At DFC, data for each department are kept separately on their
respective personal computers (PCs). Sales
forwarded

to

production

department

forecasts

from

marketing

departments

are

using memorandum. Raw material orders from

production department are forwarded to purchasing department using the same method. There is
a lack of utilizing appropriate Management Information Systems within the organization as well
as with external stakeholders.
There are seven types of information system including Management Information System
(MIS), Executive Support Systems (ESS), Management Support Systems (MSS), Decision
Support Systems (DSS), Knowledge Work Systems (KWS), Office Automation Systems (OAS)
and Transaction Processing Systems (TPS). The following figure has displayed properly about
the levels, types and functions of each level.
To solution, a business will have several Transaction Process Systems such as: calculate
and system these things that we need know and tax that we have to pay, each store should have
cash machine and cash register to make the sale easier. They need Office Automatic Systems,
Kinh Do can apply it because it coordinates diverse information workers. Especially, it will try
to improve the productivity of employee who need to process data and information. Moreover,
the company can use Word process such as Microsoft Word, Power point or Microsoft Excel XP,
with this system, their employees can improve quality work of every employees working in an
office or can accept work at home. Moreover, the company should trains employee to improve
about their skill, should have email of each manager to update information for employees. Each
office should have notice board and reward board to make employees can follow mission and
have more motivate to do their work. Each store, the company should add more staff to
introduce about product for customers with enthusiasm, friendly and funny.
13

3.6 Inventory Control

3.6.1 Economic Order Quantity (EOQ)

The ordering cost: cost associated with placing an order. For example, transport cost, production
run cost, post purchased cost, etc
The carrying cost: cost of storages, material handling, technology, internet, etc
Total cost= total ordering cost + total carrying cost=

EOQ
carrying
cost (1unit)
ordering
cost (1time)
demand
(annual)
no. of
working
days =

Cc=

1.8
Co=

50
D=

2000 units
311 days
5

price

total inv cost =

TC (Qpt)

total ordering cost

Co* D/Q
300.00000

+
total carrying cost
+
Cc* Q/2
+
300
10600.00000 /order

14

+
+

Product cost
P*D
10000

order cycle
time

no. of day/ no. of order

51.83333333 days
52 days

Qopt = 334 units/ order

TCqopt= TCEOQ=
TC300=

+ PD =

+ PD =

= 10603.33

With 334units per order, the cost is lower so the company should chose order 334units.
Order cycle time: after 52days, the company can order the units

EOQ data table

quantity and total cost
ordering
cost
quantity
Co*D/Q
carrying cost Cc*Q/2TC (inv)
note
200
500
180
10680
201 497.512438
180.9
10678.41244
202 495.049505
181.8
10676.8495
203 492.610837
182.7
10675.31084
204 490.196078
183.6
10673.79608
205 487.804878
184.5
10672.30488

298
299
300
301
302
303

335.57047
334.448161
333.333333
332.225914
331.125828
330.033003

268.2
269.1
270
270.9
271.8
272.7

15

10603.77047
10603.54816
10603.33333
10603.12591
10602.92583
10602.733

331
332
333
334
335
336

302.114804
301.204819
300.3003
299.401198
298.507463
297.619048

297.9
298.8
299.7
300.6
301.5
302.4

10600.0148
10600.00482
10600.0003 minimum inv.cost
10600.0012
10600.00746
10600.01905

Economic order quantity

12000
10000

8000
ordering cost Co*D/Q

6000

carrying cost Cc*Q/2

4000

TC (inv)

2000

1
12
23
34
45
56
67
78
89
100
111
122
133
144
155
166
177
188
199

16

3.6.2 Discounted Economic Order Quantity

Quantity Discount Schedule

Order band

1
201
401
EOQ
carrying
cost
(1unit)
ordering
cost
(1time)
demand
(annual)
no. of
working
days =

quantity price
42
43
44
45
46
47
48
49
50

Unit Price ()

200
400

5
4

any

Cc=

1.8
Co=

50
D=

2000 units
311 days

5
5
5
5
5
5
5
5
5

total cost
note
12418.75238
12364.2814
12312.32727
12262.72222
12215.31304
12169.95957
12126.53333
12084.91633
12045

17

396
397
398
399
400
401
402

4
4
4
4
4
3
3

8608.925253
8609.189169
8609.456281
8609.726566
8610
6610.276559 minimum Inv.Cost
6610.556219

TCEOQ = TCQopt= 10600

TC200=

10680

TC201=

8678.41

TC400=

8610

TC401=

6610.276

The total cost of price range 401 is lowest.

If the company do not discount, the lowest cost is 333units. If the company get discount, the
units company should order for lowest cost is 401 units. (in appendix 2)

Discounted economic order quantity

model
14000
12000

10000
8000
6000

total cost

4000
2000

1
19
37
55
73
91
109
127
145
163
181
199
217
235
253
271
289
307
325
343
361

18

19

3.7 Material Requirement Planning (MRP)

MRP is a computerized inventory control and production planning system to minimize the
inventory and maintain delivery schedules.

component
Folding Sun
Lounger (End
item)

leed
time(
week)

On-hand
inventory lot size

schedule
receipt

Bed side Assembly

2
3

100
50

L4L
L4L

Bed Side

30

L4L

Slat (2 cm)

L4L

Roller

60

L4L

Hinge

200

MULTI (100)

Wood Screw
Rest side
Assembly

1000

MULTI (400)

40

L4L

Rest Side

50

L4L

Slat (1cm)

L4L

Material requirement planning

Item
1
2
3
Folding sun lounger
0
0
0
Bed side assembly
0
0 350
Bed side
0 570
0
Slat ( 2 cm)
0 7000
0
Roller
0
90
0
Hinge
0
0
0
Wood screw
0
0
0
Rest side assembly
0
0
0
rest side
0
0 670
Slat (1 cm)
0
0 2520

4
0
0
0
0
0
0
0
360
0
0

100 in week 1
200 in week 1

Period
5
6
0 400
0
0
0
0
0
0
0
0
600
0
0 3200
0
0
0
0
0
0

7
0
0
0
0
0
0
0
0
0
0

8
0
0
0
0
0
0
0
0
0
0

The table shows that in week 6, the company needs 400 folding sun loungers. Therefore, the
company has to order in week 2 is include 570 bed site, 7000 slat (2cm), 90 roller. If in week 2,
the company can meet this material, they can next to week 3. In week 3, they need site assembly
350 beds 670 rest sides and 2520 slat (1cm). In week 4, they just need side assembly 360 rests. In
week 5, they also need 600 hinges. After that, in week 6, to complete 400 folding sun loungers,
the company has to have 3200 wood screw. If the company can meet all of this planning for
material, they can provide 400 folding sun loungers which good standard to make the customer
satisfaction.
20

3.8 Project Management Plan

(See appendix4)
Paths

Duration (week)

A- B- D- E

7 (2+3+1+1)

A- B- D- F- I- K- L

15(2+3+1+2+2+3+2)

A- B- D- F- I J- DUMMY

11 (2+3+1+2+1)

A- B- D- G- H- I- K- L

16(2 +3+1+2+1+2+3+2)

A- B- D- G- H- I- J- DUMMY

12(2+3+1+2+1+2+1)

A- C- D- E- DUMMY

5(2+1+1+1)

A- C- D- F- I- K- L

13(2+1+1+2+2+2)

A- C-D F- I- J- DUMMY

9(2+1+1+2+2+1)

A- C- D- G- H- I- K- L

14(2+1+1+2+1+2+2+2)

A- C- D- G- H- I- J- DUMMY

10(2+1+1+2+1+2++1)

The critical path is the longest path, A- B- D- G- H- I- K- L with the duration of

16weeks. A- C- D- E- DUMMY - This is the minimum time required to complete the project
(5weeks)

21

3.9 Investment Appraisal

Account rate of return (ARR) the profit arising from a project as a percentage of the initial
capital cost.
Payback period: the method is forecast about the time that company can get back the money.
With 3 projects, I choose two methods follow.
NPV( net present value) it calculates the present values of all items of income and expenditure
related to an investment at a given rate of return.
IRR(internal rate of return) a method which determines the rate of interest(the internal rate of
return) at which the NPV is 0. IRR method will indicate that a project/ investment is feasible if
the IRR exceeds the minimum acceptable rate of return.
Cost of capitala
W-1
Initial cost
Expected Cash Flow
End of Year 1
Year 2
Year 3
Year 4
Year 5

10%
W-2

W-3

$80,000

$120,000

15,000
20,000
23,000
35,000
40,000

30,000
30,000
35,000
40,000
50,000

$90,000
15,000
30,000
30,000
30,000
30,000

W-1

Year Cash Flow ($)

Discount Factor (10%) Present Value ($)
0
$80,000
1
$80,000
1
15,000
0.909
13636
2
20,000
0.826
16529
3
23,000
0.751
17280
4
35,000
0.683
23905
5
40,000
0.621
24837
NPV
$16,188

Based on the table, NPV= 16,188 it is positive, it means the investment is acceptable

22

YEAR
0
1
2
3
4
5

cash flow
$
($80,000)
15,000
20,000
23,000
35,000
40,000
133,000

cumulativ
e cast
flow
($80,000)
($65,000)
($45,000)
($22,000)
$13,000
$53,000

Estimaed
interest
rate
IRR

16% YEAR

r1

YEAR
0
1
2
3
4
5
IRR

r1 =

44%

0
1
2
3
4
5

cash flow $
($80,000)
15,000
20,000
23,000
35,000
40,000

discoounted
factor (44%) PV
1
($80,000)
0.69
10404.62
0.48
9622.77
0.33
7675.97
0.23
8102.31
0.16
6422.97
NPV
-37771.36

cash flow
$
($80,000)
15,000
20,000
23,000
35,000
40,000
16%

2
Pr ofit
(
)
3 investment

2 (15,000 20 ,000 23,000 35,000 40 ,000 ) 80 ,0000

x[
]
3
80 ,0000

= 44%

IRR = r2 + [NPV2/(NPV2-NPV1)*|(r2 r1)|]

23

16 ,188
* (44 10 )]%
16 ,188 (37 ,771)

= 10% + [
= 16, 41%

With IRR = 16,41%, it is the highest. It means it better for company, so the company should
choose this method for invest machine

W-2

Year Cash Flow ($)

Discount Factor (10%) Present Value ($)
0
$120,000
1
$120,000
1
30,000
0.909
27273
2
30,000
0.826
24793
3
35,000
0.751
26296
4
40,000
0.683
27321
5
50,000
0.621
31046
NPV
$16,729

Based on the table, NPV= 16,729 it is positive and it is higher, it means the investment is
acceptable and better for company. So, with the highest NPV, the company can get return 10%.

YEAR
0
1
2
3
4
5

cash flow
$
($120,000)
30,000
30,000
35,000
40,000
50,000
185,000

cumulativ
e cast
flow
($120,000)
($90,000)
($60,000)
($25,000)
$15,000
$65,000

24

Estimaed
interest
rate
IRR

15% YEAR

r1

YEAR
0
1
2
3
4
5
IRR

r1 =

36%

cash flow $
0 ($120,000)
1
30,000
2
30,000
3
35,000
4
40,000
5
50,000

discoounted
factor (36%) PV
1
($120,000)
0.73
22040.82
0.54
16193.25
0.40
13879.93
0.29
11654.29
0.21
10702.92
NPV
($45,528.80)

cash flow
$
($120,000)
30,000
30,000
35,000
40,000
50,000
15%

2
Pr ofit
(
)
3 investment

2 (30 ,000 30 ,000 35,000 40 ,000 50 ,000 ) 120 ,0000

x[
]
3
120 ,0000

= 36%

IRR = r2 + [NPV2/(NPV2-NPV1)*|(r2 r1)|]

= 10% + [

16 ,729
* (36 10 )]%
16 ,729 (45529 )

= 14.8%

25

W-3

Year
0
1
2
3
4
5

Cash Flow ($)

Discount Factor (10%) Present Value ($)
$90,000
1
$90,000
15,000
0.909
$13,636
30,000
0.826
$24,793
30,000
0.751
$22,539
30,000
0.683
$20,490
30,000
0.621
$18,628
NPV
$10,087

Based on the table, NPV= 10,087 it is positive, it means the investment is acceptable

YEAR
0
1
2
3
4
5

cash flow
$
($90,000)
15,000
30,000
30,000
30,000
30,000
135,000

Estimaed
interest
rate
IRR
r1

cumulativ
e cast
flow
($90,000)
($75,000)
($45,000)
($15,000)
$15,000
$45,000

14% YEAR
33%

0
1
2
3
4
5

discoounted
cash flow $ factor (33%) PV
($90,000)
1
($90,000)
15,000
0.75
11250
30,000
0.56
16875
30,000
0.42
12656.25
30,000
0.32
9492.1875
30,000
0.24 7119.140625
NPV
($32,607)

26

YEAR
0
1
2
3
4
5
IRR

r1 =

cash flow
$
($90,000)
15,000
30,000
30,000
30,000
30,000
14%

2
Pr ofit
(
)
3 investment

2 (15,000 30 ,000 30 ,000 30 ,000 30 ,000 ) 90 ,0000

x[
]
3
90 ,0000

= 33%

IRR = r2 + [NPV2/(NPV2-NPV1)*|(r2 r1)|]

= 10% + [

10 ,087
* (33 10 )]%
10 ,087 (32607 )

= 14%

27

IV. Conclusion

To conclusion, decisions are very important because risky in business depend on it, it
affects the organization considerably. So, the company should have these right decisions at the
right time, should be careful with each decisions.
In this report, there are some main things such as: 3 methods in Forecasting, Presentation,
Management Information System, Economic Order Quantity and Discount, Net work Diagram,
Material Requirement Planning, NPV and IRR methods.

28

V. References:

29

VI. Appendices:
Appendix1:

30

Appendix 2:

Months
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Jan
Feb
mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
mar
Apr
May
Jun

19 Jul
20 Aug
21 Sep

5months
working
sales (unit) total
actual (Y)
sum of 5 Ys
58
57
56
304
63
302
70
299
56
301
54
305
58
304
67
307
69
313
59
317
60
322
62
328
72
330
75
61
61.36
63.94
73.64
78.38
64.61

31

5months
moving
average
(trend= T)

60.8
60.4
59.8
60.2
61
60.8
61.4
62.6
63.4
64.4
65.6
66

season
variantion
(Y/T)

period
5

0.92
1.04
1.17
0.93
0.89
0.95
1.09
1.10
0.93
0.93
0.95
1.09

(y/t)-S

0.94
1.08
1.14
0.93
0.91
0.94
1.08
1.14
0.93
0.91
0.94
1.08
1.14
0.93
total
forecast
error

-0.02
-0.03
0.03
0.00
-0.02
0.01
0.01
-0.04
0.00
0.02
0.00
0.01

-0.02
12
-0.002

32

1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1

Period
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep

(Y-T) -S

-3.59
4.87
8.44
-4.16
-5.56
-3.59
4.87
8.44
-4.16
-5.56
-3.59
4.87
-1.68

5 period
Actual data moving
Moving
(Y)
total
Average(T) Y - T
58
57
56
304
60.8
63
302
60.4
70
299
59.8
56
301
60.2
54
305
61
58
304
60.8
67
307
61.4
69
313
62.6
59
317
63.4
60
322
64.4
62
328
65.6
72
330
66
75
61
61.86
64.30
73.24
77.28
65.15

-1.21
-2.27
1.76
-0.04
-1.44
0.79
0.73
-2.04
-0.24
1.16
-0.01
1.13
12

Forcast
error

-0.14

33

-4.8
2.6
10.2
-4.2
-7
-2.8
5.6
6.4
-4.4
-4.4
-3.6
6

EOQ data table

quantity and total cost
ordering
cost
quantity
Co*D/Q
carrying cost Cc*Q/2TC (inv)
note
200
500
180
10680
201 497.512438
180.9
10678.41244
202 495.049505
181.8
10676.8495
203 492.610837
182.7
10675.31084
204 490.196078
183.6
10673.79608
205 487.804878
184.5
10672.30488
206 485.436893
185.4
10670.83689
207 483.091787
186.3
10669.39179
208 480.769231
187.2
10667.96923
209
478.4689
188.1
10666.5689
210 476.190476
189
10665.19048
211 473.933649
189.9
10663.83365
212 471.698113
190.8
10662.49811
213 469.483568
191.7
10661.18357
214 467.28972
192.6
10659.88972
215 465.116279
193.5
10658.61628
216 462.962963
194.4
10657.36296
217 460.829493
195.3
10656.12949
218 458.715596
196.2
10654.9156
219 456.621005
197.1
10653.721
220 454.545455
198
10652.54545
221 452.488688
198.9
10651.38869
222 450.45045
199.8
10650.25045
223 448.430493
200.7
10649.13049
224 446.428571
201.6
10648.02857
225 444.444444
202.5
10646.94444
226 442.477876
203.4
10645.87788
227 440.528634
204.3
10644.82863
228 438.596491
205.2
10643.79649
229 436.681223
206.1
10642.78122
230 434.782609
207
10641.78261
231 432.900433
207.9
10640.80043
232 431.034483
208.8
10639.83448
233 429.184549
209.7
10638.88455
234 427.350427
210.6
10637.95043
235 425.531915
211.5
10637.03191
236 423.728814
212.4
10636.12881
237 421.940928
213.3
10635.24093
238 420.168067
214.2
10634.36807
239 418.410042
215.1
10633.51004
240 416.666667
216
10632.66667
241 414.937759
216.9
10631.83776
34
242 413.22314
217.8
10631.02314
243 411.522634
218.7
10630.22263
244 409.836066
219.6
10629.43607
245 408.163265
220.5
10628.66327

240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289

416.666667
414.937759
413.22314
411.522634
409.836066
408.163265
406.504065
404.8583
403.225806
401.606426
400
398.406375
396.825397
395.256917
393.700787
392.156863
390.625
389.105058
387.596899
386.100386
384.615385
383.141762
381.679389
380.228137
378.787879
377.358491
375.93985
374.531835
373.134328
371.747212
370.37037
369.00369
367.647059
366.300366
364.963504
363.636364
362.318841
361.01083
359.71223
358.422939
357.142857
355.871886
354.609929
353.35689
352.112676
350.877193
349.65035
348.432056
347.222222
346.020761

35

216
216.9
217.8
218.7
219.6
220.5
221.4
222.3
223.2
224.1
225
225.9
226.8
227.7
228.6
229.5
230.4
231.3
232.2
233.1
234
234.9
235.8
236.7
237.6
238.5
239.4
240.3
241.2
242.1
243
243.9
244.8
245.7
246.6
247.5
248.4
249.3
250.2
251.1
252
252.9
253.8
254.7
255.6
256.5
257.4
258.3
259.2
260.1

10632.66667
10631.83776
10631.02314
10630.22263
10629.43607
10628.66327
10627.90407
10627.1583
10626.42581
10625.70643
10625
10624.30637
10623.6254
10622.95692
10622.30079
10621.65686
10621.025
10620.40506
10619.7969
10619.20039
10618.61538
10618.04176
10617.47939
10616.92814
10616.38788
10615.85849
10615.33985
10614.83184
10614.33433
10613.84721
10613.37037
10612.90369
10612.44706
10612.00037
10611.5635
10611.13636
10610.71884
10610.31083
10609.91223
10609.52294
10609.14286
10608.77189
10608.40993
10608.05689
10607.71268
10607.37719
10607.05035
10606.73206
10606.42222
10606.12076

285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304

350.877193
349.65035
348.432056
347.222222
346.020761
344.827586
343.642612
342.465753
341.296928
340.136054
338.983051
337.837838
336.700337
335.57047
334.448161
333.333333
332.225914
331.125828
330.033003
328.947368

256.5
257.4
258.3
259.2
260.1
261
261.9
262.8
263.7
264.6
265.5
266.4
267.3
268.2
269.1
270
270.9
271.8
272.7
273.6

10607.37719
10607.05035
10606.73206
10606.42222
10606.12076
10605.82759
10605.54261
10605.26575
10604.99693
10604.73605
10604.48305
10604.23784
10604.00034
10603.77047
10603.54816
10603.33333
10603.12591
10602.92583
10602.733
10602.54737

305
306
307
308
309
310
311
312

327.868852
326.797386
325.732899
324.675325
323.624595
322.580645
321.543408
320.512821

274.5
275.4
276.3
277.2
278.1
279
279.9
280.8

10602.36885
10602.19739
10602.0329
10601.87532
10601.7246
10601.58065
10601.44341
10601.31282

313
314
315
316
317
318
319
320
321
322

319.488818
318.471338
317.460317
316.455696
315.457413
314.465409
313.479624
312.5
311.52648
310.559006

281.7
282.6
283.5
284.4
285.3
286.2
287.1
288
288.9
289.8

10601.18882
10601.07134
10600.96032
10600.8557
10600.75741
10600.66541
10600.57962
10600.5
10600.42648
10600.35901

36

323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345

309.597523
308.641975
307.692308
306.748466
305.810398
304.878049
303.951368
303.030303
302.114804
301.204819
300.3003
299.401198
298.507463
297.619048
296.735905
295.857988
294.985251
294.117647
293.255132
292.397661
291.54519
290.697674
289.855072

290.7
291.6
292.5
293.4
294.3
295.2
296.1
297
297.9
298.8
299.7
300.6
301.5
302.4
303.3
304.2
305.1
306
306.9
307.8
308.7
309.6
310.5

10600.29752
10600.24198
10600.19231
10600.14847
10600.1104
10600.07805
10600.05137
10600.0303
10600.0148
10600.00482
10600.0003 minimum inv.cost
10600.0012
10600.00746
10600.01905
10600.03591
10600.05799
10600.08525
10600.11765
10600.15513
10600.19766
10600.24519
10600.29767
10600.35507

346
347
348
349
350
351
352
353
354

289.017341
288.184438
287.356322
286.532951
285.714286
284.900285
284.090909
283.286119
282.485876

311.4
312.3
313.2
314.1
315
315.9
316.8
317.7
318.6

10600.41734
10600.48444
10600.55632
10600.63295
10600.71429
10600.80028
10600.89091
10600.98612
10601.08588

355
356
357
358
359
360
361

281.690141
280.898876
280.112045
279.329609
278.551532
277.777778
277.00831

319.5
320.4
321.3
322.2
323.1
324
324.9

10601.19014
10601.29888
10601.41204
10601.52961
10601.65153
10601.77778
10601.90831

37

362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402

276.243094
275.482094
274.725275
273.972603
273.224044
272.479564
271.73913
271.00271
270.27027
269.541779
268.817204
268.096515
267.379679
266.666667
265.957447
265.251989
264.550265
263.852243
263.157895
262.467192
261.780105
261.096606
260.416667
259.74026
259.067358
258.397933
257.731959
257.069409
256.410256
255.754476
255.102041
254.452926
253.807107
253.164557
252.525253
251.889169
251.256281
250.626566
250
249.376559
248.756219

325.8
326.7
327.6
328.5
329.4
330.3
331.2
332.1
333
333.9
334.8
335.7
336.6
337.5
338.4
339.3
340.2
341.1
342
342.9
343.8
344.7
345.6
346.5
347.4
348.3
349.2
350.1
351
351.9
352.8
353.7
354.6
355.5
356.4
357.3
358.2
359.1
360
360.9
361.8

38

10602.04309
10602.18209
10602.32527
10602.4726
10602.62404
10602.77956
10602.93913
10603.10271
10603.27027
10603.44178
10603.6172
10603.79651
10603.97968
10604.16667
10604.35745
10604.55199
10604.75026
10604.95224
10605.15789
10605.36719
10605.5801
10605.79661
10606.01667
10606.24026
10606.46736
10606.69793
10606.93196
10607.16941
10607.41026
10607.65448
10607.90204
10608.15293
10608.40711
10608.66456
10608.92525
10609.18917
10609.45628
10609.72657
10610
10610.27656
10610.55622

Discount table
quantity price
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

total cost
note
12418.75238
12364.2814
12312.32727
12262.72222
12215.31304
12169.95957
12126.53333
12084.91633
12045
12006.68431
11969.87692
11934.49245
11900.45185
11867.68182
11836.11429
11805.68596
11776.33793
11748.01525
11720.66667
11694.24426
11668.70323
11644.00159
11620.1
11596.96154
11574.55152
11552.83731
11531.78824
11511.37536
11491.57143
11472.3507
11453.68889
11435.56301
11417.95135
11400.83333
11384.18947
11368.0013
11352.25128
11336.92278
11322
11307.4679

39

82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

11293.3122
11279.51928
11266.07619
11252.97059
11240.1907
11227.72529
11215.56364
11203.69551
11192.11111
11180.8011
11169.75652
11158.96882
11148.42979
11138.13158
11128.06667
11118.22784
11108.60816
11099.20101
11090
11080.99901
11072.19216
11063.57379
11055.13846
11046.88095
11038.79623
11030.87944
11023.12593
11015.53119
11008.09091
11000.8009
10993.65714
10986.65575
10979.79298
10973.06522
10966.46897
10960.00085
10953.65763
10947.43613
10941.33333
10935.34628
10929.47213
10923.70813
10918.05161
10912.5
10907.05079
10901.70157
10896.45
10891.2938
10886.23077

40

127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

10901.70157
10896.45
10891.2938
10886.23077
10881.25878
10876.37576
10871.5797
10866.86866
10862.24074
10857.69412
10853.22701
10848.83768
10844.52446
10840.28571
10836.11986
10832.02535
10828.0007
10824.04444
10820.15517
10816.33151
10812.57211
10808.87568
10805.24094
10801.66667
10798.15166
10794.69474
10791.29477
10787.95065
10784.66129
10781.42564
10778.24268
10775.11139
10772.03082
10769
10766.01801
10763.08395
10760.19693
10757.3561
10754.56061
10751.80964
10749.1024
10746.4381
10743.81598
10741.23529
10738.69532
10736.19535
10733.73468
10731.31264

41

172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

10736.19535
10733.73468
10731.31264
10728.92857
10726.58182
10724.27175
10721.99775
10719.75922
10717.55556
10715.38619
10713.25055
10711.14809
10709.07826
10707.04054
10705.03441
10703.05936
10701.11489
10699.20053
10697.31579
10695.46021
10693.63333
10691.83472
10690.06392
10688.32051
10686.60408
10684.91421
10683.25051
10681.61256
10680
8678.412438
8676.849505
8675.310837
8673.796078
8672.304878
8670.836893
8669.391787
8667.969231
8666.5689
8665.190476
8663.833649
8662.498113
8661.183568
8659.88972
8658.616279
8657.362963
8656.129493
8654.915596
8653.721005
8652.545455
8651.388688

42

217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

8656.129493
8654.915596
8653.721005
8652.545455
8651.388688
8650.25045
8649.130493
8648.028571
8646.944444
8645.877876
8644.828634
8643.796491
8642.781223
8641.782609
8640.800433
8639.834483
8638.884549
8637.950427
8637.031915
8636.128814
8635.240928
8634.368067
8633.510042
8632.666667
8631.837759
8631.02314
8630.222634

244
245
246
247
248
249
250
251
252

4
4
4
4
4
4
4
4
4

8629.436066
8628.663265
8627.904065
8627.1583
8626.425806
8625.706426
8625
8624.306375
8623.625397

43

253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

8622.956917
8622.300787
8621.656863
8621.025
8620.405058
8619.796899
8619.200386
8618.615385
8618.041762
8617.479389
8616.928137
8616.387879
8615.858491
8615.33985
8614.831835
8614.334328
8613.847212
8613.37037
8612.90369
8612.447059
8612.000366
8611.563504
8611.136364
8610.718841
8610.31083
8609.91223
8609.522939
8609.142857
8608.771886
8608.409929
8608.05689
8607.712676
8607.377193

286
287
288
289
290
291
292
293

4
4
4
4
4
4
4
4

8607.05035
8606.732056
8606.422222
8606.120761
8605.827586
8605.542612
8605.265753
8604.996928

44

294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

8604.736054
8604.483051
8604.237838
8604.000337
8603.77047
8603.548161
8603.333333
8603.125914
8602.925828
8602.733003
8602.547368
8602.368852
8602.197386
8602.032899
8601.875325
8601.724595
8601.580645
8601.443408
8601.312821
8601.188818
8601.071338
8600.960317
8600.855696
8600.757413
8600.665409
8600.579624
8600.5
8600.42648
8600.359006
8600.297523
8600.241975

325
326
327
328
329
330
331
332
333
334
335

4
4
4
4
4
4
4
4
4
4
4

8600.192308
8600.148466
8600.110398
8600.078049
8600.051368
8600.030303
8600.014804
8600.004819
8600.0003
8600.001198
8600.007463

45

336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

8600.019048
8600.035905
8600.057988
8600.085251
8600.117647
8600.155132
8600.197661
8600.24519
8600.297674
8600.355072
8600.417341
8600.484438
8600.556322
8600.632951
8600.714286
8600.800285
8600.890909
8600.986119
8601.085876
8601.190141
8601.298876
8601.412045
8601.529609
8601.651532
8601.777778
8601.90831
8602.043094
8602.182094
8602.325275
8602.472603
8602.624044
8602.779564
8602.93913
8603.10271
8603.27027
8603.441779
8603.617204
8603.796515
8603.979679
8604.166667
8604.357447
8604.551989
8604.750265
8604.952243
8605.157895
8605.367192
8605.580105
8605.796606
8606.016667
8606.24026

46

381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
3
3

8605.367192
8605.580105
8605.796606
8606.016667
8606.24026
8606.467358
8606.697933
8606.931959
8607.169409
8607.410256
8607.654476
8607.902041
8608.152926
8608.407107
8608.664557
8608.925253
8609.189169
8609.456281
8609.726566
8610
6610.276559 minimum Inv.Cost
6610.556219

47

Appendix 3
Item
Bed side Assembly
LLC
Lot size
L4L
LT
Gross requirements
Schelduled Receipts
Projectecd on Hand
Net Requirements
Planned order Receipts
Planned order Releases

Item
Bed Side LLC
Lot size
L4L
LT
Gross requirements
Schelduled Receipts
Projectecd on Hand
Net Requirements
Planned order Receipts
Planned order Releases

2
1

30

Item
Slat (2 cm) LLC
Lot size
L4L
LT
Gross requirements
Schelduled Receipts
Projectecd on Hand
Net Requirements
Planned order Receipts
Planned order Releases
Item
Roller LLC
Lot size
L4L
LT
Gross requirements
Schelduled Receipts
Projectecd on Hand
Net Requirements
Planned order Receipts
Planned order Releases

1
3

50

0
0
0
30
0
0
0

2
1

60

1
0
100
130
0
0
0

0
0
0
60
0
0
0

1
0
0
50
0
0
0

Period
2
3
0 700
0
0
130
0
0 570
0 570
570
0

2
0
0
50
0
0
0

4
0
0
0
0
0
0

5
0
0
0
0
0
0

1
0
0
0
0
0
0

Period
2
3
0 7000
0
0
0
0
0 7000
0 7000
7000
0

4
0
0
0
0
0
0

5
0
0
0
0
0
0

1
0
200
260
0
0
0

Period
2
3
0 350
0
0
260
0
0
90
0
90
90
0

4
0
0
0
0
0
0

5
0
0
0
0
0
0

0
0
0
0
0
0
0

2
1

0
0
0
50
0
0
0

Period
3
0
0
50
0
0
350

48

4
0
0
50
0
0
0

5
0
0
50
0
0
0

6
0
0
0
0
0
0

6
0
0
0
0
0
0

6
0
0
0
0
0
0

7
0
0
0
0
0
0

7
0
0
0
0
0
0

7
0
0
0
0
0
0

6
400
0
0
350
350
0

8
0
0
0
0
0
0

8
0
0
0
0
0
0

8
0
0
0
0
0
0

7
0
0
0
0
0
0

8
0
0
0
0
0
0

item
Wood Screw LLC:
Lot Size
Mult
400 LT
Gross Requirements
Scheduled Receipts
Projected on hand
Net Requirements
Planned order receipts
Planned order releases

1
2

1000

Item
Rest sideLLC
Assembly 1
Lot size
L4L
LT
2
Gross requirements
Schelduled Receipts
Projectecd on Hand
40
Net Requirements
Planned order Receipts
Planned order Releases

Item
Rest SideLLC
Lot size
L4L
LT
Gross requirements
Schelduled Receipts
Projectecd on Hand
Net Requirements
Planned order Receipts
Planned order Releases

Item
Slat (1cm)
LLC
Lot size
L4L
LT
Gross requirements
Schelduled Receipts
Projectecd on Hand
Net Requirements
Planned order Receipts
Planned order Releases

2
1

50

2
1

0
0
0
40
0
0
0

0
0
0
50
0
0
0

0
0
0
0
0
0
0

49

0
1
0
0
0
0
1000 1000
0
0
0
0
0
0

1
0
0
40
0
0
0

1
0
0
50
0
0
0

1
0
0
0
0
0
0

2
0
0
1000
0
0
0

Period
3
4
0
0
0
0
1000 1000
0
0
0
0
0
0

5
0
0
1000
0
0
0

6
7
8
4000
0
0
0
0
0
-3000 -3000 200
3000 3000 3000
0
0 3200
3200
0
0

2
0
0
40
0
0
0

Period
3
0
0
40
0
0
0

4
0
0
40
0
0
360

5
0
0
40
0
0
0

6
400
0
0
360
360
0

7
0
0
0
0
0
0

8
0
0
0
0
0
0

2
0
0
50
0
0
0

Period
3
0
0
50
0
0
670

4
720
0
0
670
670
0

5
0
0
0
0
0
0

6
0
0
0
0
0
0

7
0
0
0
0
0
0

8
0
0
0
0
0
0

Period
3
4
0 2520
0
0
0
0
0 2520
0 2520
2520
0

5
0
0
0
0
0
0

6
0
0
0
0
0
0

7
0
0
0
0
0
0

8
0
0
0
0
0
0

2
0
0
0
0
0
0

Appendix 4

50