EOQ Problem 1
If the total items of certain spare parts is 1,200,000 items /years ,
while the price of one item = 5 LE . Following the carrying
out and ordering costs information / order are given in the
table below , Calculate :- Order No. No. Of Items Ordering Cost
(LE)
Carrying out
Cost (LE)
2 600,000 20,000 140,000
A) Economic Ordering Number / Years 4 300,000 40,000 80,000
B) Total Inventory Cost for the EOQ
6 200,000 60,000 50,000
C) Total Inventory Cost / Item
8 150,000 80,000 40,000
D) Total Cost / Item
10 120,000 100,000 30,000
12 100,000 120,000 25,000
Total Inventory Cost ($)
Ordering Cost
Order No. No. Of Items Carrying out Cost (LE) Total Cost 200K
(LE) Ordering Cost
180K Carrying Cost
2 600,000 20,000 140,000 160,000 160K Total Cost
140K
4 300,000 40,000 80,000 120,000
120K
6 200,000 60,000 50,000 110,000 100K
80K
8 150,000 80,000 40,000 120,000
60K
10 120,000 100,000 30,000 130,000 40K
20K
12 100,000 120,000 25,000 145,000 Number of
Orders per
2 4 6 8 10 12 Year
Total Inventory Cost ($)
A) EOQ = 6 Orders 200K
Ordering Cost
180K Carrying Cost
160K Total Cost
B) TOC = 110,000 L.E 140K
120K
100K
80K
C) TOC/Item = 110,000 / 200,000 = 0.55 L.E / Item
60K
40K
20K
D) TC/Item = 5 + 0.55 = 5.55 L.E Number of
Orders per
2 4 6 8 10 12 Year
1
EOQ Problem 2
If the total items of certain spare parts is 1200 items /years ,
while the price of one item = 500 LE . Following the carrying
out and ordering costs information / order
are given in the Order
No.
No. Of
Items
Ordering
Cost (LE)
Carrying out
Cost (LE)
table below , Calculate :- 2 600 20,000 180,000
4 300 40,000 120,000
A) Economic Ordering Number / Years 6 200 60,000 100,000
B) Total Inventory Cost for the EOQ 8 150 80,000 80,000
C) Total Inventory Cost / Item 10 120 100,000 60,000
D) Total Cost / Item 12 100 120,000 50,000
Total Inventory Cost ($)
Order No. Of Ordering Carrying out Total Inventory
Total Cost Ordering Cost
No. Items Cost (LE) Cost (LE) Cost / Item
200K Carrying Cost
180K
2
Total Cost
600 20,000 180,000 200,000 10
160K
4 300 40,000 120,000 160,000 4 120K
100K
6 200 60,000 100,000 160,000 2.67
80K
8 150 80,000 80,000 160,000 2 60K
10 120 100,000 60,000 160,000 1.6 40K
20K
12 100 120,000 50,000 150,000 1.25 Number of
Orders per
2 4 6 8 10 12 Year
A) EOQ = 10 Orders, Because it has Lowest Total Inventory Cost / Item
Total Inventory Cost ($)
B) TOC = 160,000 L.E
Ordering Cost
200K Carrying Cost
180K Total Cost
160K
120K
C) TOC/Item = 160,000 / 100,000 = 1.6 L.E / Item 100K
80K
60K
D) TC/Item = 500 + 1.6 = 501.6 L.E 40K
20K
Number of
Orders per
2 4 6 8 10 12 Year
2
General Exercise
Maintenance needs to 2 Mechanical and one helper where the estimated
planned hour is 10 hours . The maintenance labors finished the work in
12 Hours due to some problems , Average labor cost rates is 50 LE /hours
and the bearing cost 5000 LE , Calculate
A) Craft Performance
B) Determine Working Hours and Job Duration
C) Calculate the Repair & Fault costs if Production losses 2000 LE/hour
10
A) Cp = = 83.3 %
12
B) Working Hours = 12 x 3 = 36 Hour
Job Duration = 12 Hour
C) Labor Cost = 50 x 36 = 1,800 L.E
Repair Cost = 5000 + 1800 = 6,800 L.E
Production Losses = 2000 x 12 = 24,000 L.E
Fault Cost = 24000 + 6800 = 30,800 L.E
3
Crew Working Hours
A Maintenance crew consists of the following information
- 3 Mechanics with 10 hours work over and 15 hour leaves
- 1 Welder
- 5 Electricians with 20 hours leaves and 15 hours work-over
- 4 Helpers
The Crew works 10 hours daily and 6 days / week
Construct a table for weekly crew working hours
availability for this crew
Crew Work Hours Availability Forecast
Paid Work Available
Craft Pearsons Leave Train Misc
Hours Over Hours
Mechanics 3x60 180 15 - - 10 155
Welders 1x60 60 - - - - 60
Electricans 5x60 300 20 - - 15 265
Helpers 4x60 240 - - - - 240
Total 13x60 780 35 - - 24 720
4
Work Order Problem
A Faulted ball bearing (KSO150) in Hydraulic pump(Tag number
120WDG005) need to change in PM routine, It needs to 2
Mechanical and one helper where the estimated planned hour
is 10 hours. The labors finished the work in 12 Hours due to
some problems in bearing dis-assembling
Work Order #______
REQUESTER SECTION Priority______
Hydraulic Pump (Tag#120WDG005) has a Faulted ball
bearing (Def.Tag#KSO150) need to be changed , Needs
Mechanical Crew , No Outage Required , No Clearance
Required , No Confined Space Required
By : __________ , Date & Time : —/—/—— , Approval : ________
PLANNING SECTION
……………………………………………………………………………
………………Description of work to be Performed…………….
……………………………………………………………………………
Labor : 2 Mech 10Hr Working Hours : 30Hr , Actual : 36
1 Helper 10Hr Job Duration : 10Hr , Actual : 12
Parts : Ball Bearing , Qty 1 , Cost : 5000 L.E
By : ___ , Date & Time : -/-/— , Job Estimate : 6500 , Actual : 6800
CRAFT FEEDBACK
…………………………………………………………………………….
………..………………Work actually Performed…………………..
…………………………………………………………………………….
Actual Labor : 2 Mech - 12 Hours Each
Job Started : —/—/—— , Finished : —/—/——
By : ___ , Date & Time : —/—/——
CODING
