Blood+Lab+Simulation+Decisions



||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || daily || 3,969 || 132.3 ||   ||   ||   ||   ||   || kits || Cost ||  ||   ||   ||   ||   ||   || rate |||| Tentative purchasing date ||  ||   ||   ||   ||   ||   ||   ||
 * || C0 = || 500,000 ||  || Interest rate ||   || 10% per year compound
 * Day 30 || RB = || 529,969 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * |||| Max ordering quantity ||  || no defined ||   || LT = || 3 days ||   || 1 kit = || $100 ||   ||   ||   ||
 * || Ordering cost ||  ||   || $1,000 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || Day1 || Q || 600 ||  ||   ||   |||| reorder point || rop |||| D x LT (lead time) ||   ||   ||
 * || Day30 || Q || 470 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || Depletion ||  || 130 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || ROD ||  || 4.3333333 || per day ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   || 130 || 0.2 || 26 ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || Day 60 ||  || 156 || units ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * |||| Remaining units || 314 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || reorder q ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || at day 60 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   ||   ||   ||   || Needed
 * |||| Remaining units || 314 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || reorder q ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || at day 60 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   ||   ||   ||   || Needed
 * ||  ||   ||   ||   ||   || Needed
 * || 60 - 240 || 180 |||| days of high demand (35) ||  || 6300 || 630000 ||   ||   ||   ||   ||   ||   ||
 * || 240 - 300 || 60 |||| days of steady demand ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 300 - 360 || 60 |||| days demand declines ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Demand Pattern ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Starting day 60 to day 180 we have a fluctuating increasing demand (refer to demand chart). ||  ||   ||   ||   ||   ||   ||   ||
 * In scenario 1, it is obvious to take advantage of the compound interest and steady demand from day 30 to 60 ||  ||   ||   ||   ||   ||
 * we should buy 2 machines for station 1 but no machines for station 2 and 3 until utilization reaches 70% or day 60 ||  ||   ||   ||   ||   ||
 * || Scenario 1 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * |||| Purchasing Machines ||  || Day 30 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Q || Station || Cost ||  || Utilization
 * || Scenario 1 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * |||| Purchasing Machines ||  || Day 30 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Q || Station || Cost ||  || Utilization
 * Q || Station || Cost ||  || Utilization
 * 2 || 1 || 25000 || 50000 || 100% ||  || Day 30 ||   ||   ||   ||   ||   ||   ||   ||
 * 1 || 2 || 75000 || 75000 || 20% ||  |||||| When utilization reaches 70% or ||   ||   ||   ||   ||   ||
 * 1 || 3 || 75000 || 75000 || 12% ||  || day 60 ||   ||   ||   ||   ||   ||   ||   ||
 * Total ||  ||   || 200000 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Day 30 ||  ||   || 479,969 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * earning interest 'til day 60 || significant |||||||||| **Make several orders to earn interest on principal ||  ||   ||   ||   ||   ||
 * Kits purchasing impact ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  || Scenario 1 ||   || Scenario 2 ||   || Scenario 3 ||   ||   ||   ||   ||   ||   ||   ||
 * Q (day 30) || 3000 ||  || 355 ||   || 1000 ||   ||   ||   ||   ||   ||   ||   ||
 * Cost ||  || 300000 ||   || 35500 ||   || 100000 ||   ||   ||   ||   ||   ||   ||   ||
 * RB (Remaining Balance) || 179,969 ||  || 444,469 ||   || 379,969 ||   ||   ||   ||   ||   ||   ||   ||
 * Interest on RB (1yr) || 549.9052778 ||  || 1358.099722 ||   || 1161.016389 ||   ||   ||   ||   ||   ||   ||   ||
 * Interest on RB (180 days) || 98982.95 ||  || 244457.95 ||   || 208982.95 ||   ||   ||   ||   ||   ||   ||   ||
 * Reordering cost - interest || $ 80,982.95 ||  || $ 226,457.95 ||   || $ 190,982.95 ||   ||   ||   ||   ||   ||   ||   ||
 * This calculations are assuming constant demand in total of 6,300 kits consumption on 180 days ||  ||   ||   ||   ||   ||   ||
 * In fact the cost of ordering fewer kits is lower and more interest is earned. ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Ordering cost ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * EOQ = || V 2*6300*1000 || 354.964787 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 100 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * LT = 3 days ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Reorder times = 6,300/355 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 17.74647887 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Cost = 18*1000 || 18000 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * It will cost us 18000 to order the kits during 180 days. It means we will order 18 times in 180 days ||  ||   ||   ||   ||   ||   ||
 * It takes 3 days to get the kits. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Decision Needed ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * The decision is between using EOQ and its values or buy an increase amount of kits to save on ||  ||   ||   ||   ||   ||   ||
 * reordering costs and being able to handle the demand spike. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Suggestion from members: ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * John thinks we should follow EOQ and order according to the EOQ results. ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Danilo thinks we should purchase 1000 kits in order to have a confortable inventory stock and handle the ||  ||   ||   ||   ||   ||
 * demand spike. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Demand on 18 days is 6,300 kits ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * We should order at day 60 about 1,000 kits ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * It takes 3 days to get inventory ordered so… ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * once inventory is depleted to 120 kits we should order 3,000 kits ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * The remaining order should be of 2,300 kits to satisfy the forecasted demand of 6,300 kits ||  ||   ||   ||   ||   ||   ||   ||
 * Benefits: ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Ordering costs will be only $3000 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * If we are able to catch demand we will be producing kits quickly and making top dollar per kit ||  ||   ||   ||   ||   ||   ||
 * If we follow eoq and we do not have enough kits to handle the spike…. Earning per kit drops to ||  ||   ||   ||   ||   ||   ||
 * the amount we miss. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Vote guys. EOQ vs Safety Stock! ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Text the team. John you can defend your position by posting more numbers or statements in the wiki. ||  ||   ||   ||   ||   ||   ||
 * We have 'til Monday to decide…. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * John thinks we should follow EOQ and order according to the EOQ results. ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Danilo thinks we should purchase 1000 kits in order to have a confortable inventory stock and handle the ||  ||   ||   ||   ||   ||
 * demand spike. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Demand on 18 days is 6,300 kits ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * We should order at day 60 about 1,000 kits ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * It takes 3 days to get inventory ordered so… ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * once inventory is depleted to 120 kits we should order 3,000 kits ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * The remaining order should be of 2,300 kits to satisfy the forecasted demand of 6,300 kits ||  ||   ||   ||   ||   ||   ||   ||
 * Benefits: ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Ordering costs will be only $3000 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * If we are able to catch demand we will be producing kits quickly and making top dollar per kit ||  ||   ||   ||   ||   ||   ||
 * If we follow eoq and we do not have enough kits to handle the spike…. Earning per kit drops to ||  ||   ||   ||   ||   ||   ||
 * the amount we miss. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Vote guys. EOQ vs Safety Stock! ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Text the team. John you can defend your position by posting more numbers or statements in the wiki. ||  ||   ||   ||   ||   ||   ||
 * We have 'til Monday to decide…. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * the amount we miss. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Vote guys. EOQ vs Safety Stock! ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Text the team. John you can defend your position by posting more numbers or statements in the wiki. ||  ||   ||   ||   ||   ||   ||
 * We have 'til Monday to decide…. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Text the team. John you can defend your position by posting more numbers or statements in the wiki. ||  ||   ||   ||   ||   ||   ||
 * We have 'til Monday to decide…. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||