Step 1: Use the values below to calculate the EOQ, Order Cost, Holding Cost, and Total Cost (hint: your quantity to calculate the costs should be the EQQ):

Product A

Product B

Product C

Product D

Product E

D

75000

10000

20000

45000

100000

V

$20

$50

$8000

$4

$62.50

O

$30

$80

$300

$40

$200

C

22.5%

20%

15%

22.5%

25%


Safety stock assignment

Product A Product B Product C Product D Product E
Demand Order Lead Time Demand Order Lead Time Demand Order Lead Time Demand Order Lead Time Demand Order Lead Time
96 3 107 4 164 7 168 8 217 11
98 94 156 200 190
103 98 161 194 184
97 100 155 177 196
104 95 152 172 185
96 3 106 4 155 7 195 8 208 11
103 102 153 193 196
103 104 150 191 199
103 95 151 182 219
103 90 158 181 204
99 3 107 4 159 7 161 10 215 11
103 103 154 189 182
100 90 159 171 212
105 104 155 174 196
96 103 154 163 181
97 2 103 4 162 8 195 9 200 13
103 92 158 190 210
100 94 164 178 213
102 108 158 198 209
100 104 154 166 208
97 2 100 5 162 6 187 8 191 10
99 94 159 166 216
95 93 152 186 199
99 106 163 167 188
102 102 150 172 183
105 2 102 4 153 6 182 10 219 13
100 94 154 176 217
96 93 153 169 205
101 93 152 166 219
98 97 150 187 202


Question: For Product E, how large should the Kanban bin be? (rounded to the nearest integer, e.g. xx.xX-->Xx)