Курганська Єлізавета Євгенівна
МТ-304Ба
Record book - 24
i=4
j=2
Laboratory Class #1
MANAGEMENT OF RAW MATERIAL STOCK
The purpose of the lesson : to get acquainted with the parameters of the control
system and calculate their value for raw materials with different variations of delivery
batches.
Task
1. Determine the optimal product order size.
2. Calculate the costs of logistics costs for variations in delivery batches.
Methodical recommendations for work performance
Stock formation is always associated with direct costs of storage, loss of quality
of goods, lease of warehouse space, payment of personnel, insurance of material
values, etc.
There are modern management models in which inventories approach zero.
Workingwithout a warehouse, transshipment of cargo according to the direct "ship
wagon" option or organization of assembly and construction works "from wheels"
using the logistical principle "just in time", the use of " pulling " production
management systems, etc. , allow to reduce material costs reserves to almost zero and
significantly reduce working and loan funds.
The optimal delivery lot ensures the minimum cost of inventory formation. The
optimal delivery lot is called the economic order size (EOQ - Economic Order
Quantity).
If the size of the supply batch is small, then transport and procurement costs will
be decisive. Ordered products arrive often, but in small batches. One-time storage
volumes are decreasing. The intensity of transport is increasing. In this case, it is
better to use your own vehicles with a small load capacity. This mode of operation is
typical for the small wholesale sector of goods movement during intra -city
distribution of raw materials.
If the size of the order is large enough, then the main costs are the costs of storing
stocks. Orders are rarely fulfilled, but in large batches. At the same time, the volume
of stored goods is increasing, which requires large warehouses for storing stocks.
The general state of reserves is determined by the influence of two different
processes. One process is the consumption of inventory as a result of manufacturing
or commercial activities. Another process is restocking. It happens discretely, in
batches depending on the operation of the transport. These two processes make up the
general model of goods movement. The intensity of inventory consumption is
determined by the demand for inventory and can be controlled in production systems
or random in commercial activity.
Initial data
The volume of sales of AI-95 gasoline 500 t/year
at gas stations (D)
The purchase price of one ton of 8500 UAH
gasoline (Ц)
For one order, the shop owner must 510 UAH
pay (So)
The delivery time of the order 5 days
from the supplier to the store (Tz)
Gas station operates (Tr) 365 days
Storage costs for this product (a) 28.6% of the average annual cost of
the product
Stages of execution
1. Determine the optimal size of the product order.
2. Calculate the storage cost of a product unit.
3. Determine transport and procurement costs.
4. Determine the costs of storing stocks.
5. Determine the total cost of the formation of commodity stocks.
6. Build cost schedules.
7. Calculate the costs of logistics costs for variations in delivery batches.
8. Draw conclusions.
CALCULATIONS
1. Determine the optimal size of the product order.
2𝐶𝑜*𝐷 2*510*500
𝑞𝑜 = 𝐶ℎ
= 3 281
=13
where Ch is the storage cost of a product unit, UAH;
Co - cost of the order, UAH;
D – sales volume of brand gasoline, UAH;
2. Cost of storage of a product unit.
𝐶ℎ = 𝑎 * Ц = 28. 6% * 8500 = 2431 𝑈𝐴𝐻
where Ц is the purchase price of one ton of gasoline, UAH;
a – storage costs for this product depending on its value, %
3. Determine transport and procurement costs.
𝐶тр = 𝐶𝑜 * 𝑛 = 510 * 38 = 19 380 𝑈𝐴𝐻
The number of rides (flights) per year for the specified vehicle:
𝑛 = 𝐷/𝑞𝑜 = 500/13 = 38 𝑟𝑖𝑑𝑒𝑠
where D is the volume of gasoline sales, liters.
Period between deliveries:
𝑅 = 𝑇𝑝/𝑛 = 365/38 = 10
where Tr is the number of working days in a year, days.
4. Determine Inventory storage costs.
𝐶зб = 𝐶ℎ * 𝑞𝑜/2 = 2 431 * 13/2 = 15 801 𝑈𝐴𝐻
5. Determine the total cost of the formation of commodity stocks.
𝐶зг = 𝐶тр + 𝐶зб = 19 380 + 15 801 = 35 181 𝑈𝐴𝐻
7. Working capital.
𝐶об = Ц * 𝑞𝑜 + 𝐶зг = 8 500 * 13 + 35 181 = 145 681 𝑈𝐴𝐻
8. The share of logistics costs in working capital.
𝑟 = 𝐶зг * 100/𝐶об = 35 181 * 100/145 681 = 27
9. Build expense schedules. Table 1.1 should be used to construct the graph. The
size of the delivery lot is accepted arbitrarily - a little less and a little more than the
optimal delivery lot.
Table 1.1 – Calculation of logistics costs
Parameters qo
5 10 15 25 30 40
𝐷
n ( 𝑞𝑜 ) 100 50 33 20 16 12
Ctr (Co*n) 51 000 25 500 16 830 10 200 8 160 6 120
𝐶зб (
𝑄*𝐶ℎ
) 6 078 12 155 18 233 30 388 36 465 48 620
2
Czg 57 078 37 655 35 063 40 588 44 625 54 740
Graph 1.1. Schedules of costs for transportation and storage of a batch of goods and a
schedule of total variable costs for storing stocks
10. Determination of the sensitivity of logistics costs when the delivery batch
deviates from the optimal value. We set the deviation from the optimal delivery batch,
for example, plus or minus 30%.
Next, it is necessary to calculate Стр , Сзб , Сзп at q1 and q2. The results are
summarized in Table 1.2.
Table 1.2 – Calculation of costs of logistics costs for variations in delivery batches
Стр (Co*n) Сзб (
𝑄*𝐶ℎ
) Czg
2
q0= 13 19 615 15 801 35 416
q1= 9 28 333 10 939 39 272
q2= 17 15 000 20 663 35 663
11. Calculate the change in logistics costs when the delivery batch deviates from
the optimal value in the warehouse as a percentage:
for q1=(39 272-35 416)/35 416 = 1,08%
for q2=(35 663-35 416)/35 416 = 6,9%
12. Draw conclusions on the work.
During this laboratory work the parameters of the control system for raw
materials with different variations of delivery batches were calculated. The optimal
size of the product order was taken into account and on the base of its changes
expense schedule was constructed (graph 1.1).
When the size of the order is getting bigger - transport and procurement costs
are getting smaller, while inventory storage costs are increasing too.
The sensitivity of logistics costs with deviation of the delivery batch was also
analyzed. Increasing of the optimal delivery batch on 30% made the inventory storage
costs higher while others parameters became smaller. While decreasing of the optimal
delivery batch on 30% ended with higher transport and procurement costs as well as
the total cost of the formation of commodity stocks, while inventory storage costs
became smaller.
Literature:
Methodological guidelines for independent work and conducting practical classes in
the academic discipline "Theory of reserves" (for full-time and part-time students of
specialties 7.03060107, 8.03060107 - Logistics (073 - Management. Logistics),
7.03060107, 8.07010101 - Transport systems (275 - Transport technologies) ) /
Kharkiv. national _ city university _ farm named after O. M. Beketova; arrangement:
A. S. Galkin. – Kharkiv: XNUMX named after O. M. Beketova, 2016. – 48 p.