Maximum Inventory Manufacturing Model Solution

STEP 0: Pre-Calculation Summary
Formula Used
Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model
Qmfg = (1-D/K)*EOQms-Q1
This formula uses 5 Variables
Variables Used
Maximum Inventory Manufacturing Model - The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation.
Demand per Year - Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.
Production Rate - Production Rate refers to the number of goods that can be produced during a given period of time.
EOQ Manufacturing Model with Shortage - EOQ Manufacturing Model with Shortage is the order quantity a company should purchase to minimize inventory cost assuming demand is constant.
Maximum Stock out Manufacturing Model - The Maximum Stock out Manufacturing Model is the maximum capacity of a business to stock goods.
STEP 1: Convert Input(s) to Base Unit
Demand per Year: 10000 --> No Conversion Required
Production Rate: 20000 --> No Conversion Required
EOQ Manufacturing Model with Shortage: 500 --> No Conversion Required
Maximum Stock out Manufacturing Model: 152.5563 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Qmfg = (1-D/K)*EOQms-Q1 --> (1-10000/20000)*500-152.5563
Evaluating ... ...
Qmfg = 97.4437
STEP 3: Convert Result to Output's Unit
97.4437 --> No Conversion Required
FINAL ANSWER
97.4437 <-- Maximum Inventory Manufacturing Model
(Calculation completed in 00.004 seconds)

Credits

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Created by Suman Ray Pramanik
Indian Institute of Technology (IIT), Kanpur
Suman Ray Pramanik has created this Calculator and 50+ more calculators!
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Verified by Payal Priya
Birsa Institute of Technology (BIT), Sindri
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Manufacturing and Purchase Model Calculators

EOQ Manufacturing Model with Shortage
​ LaTeX ​ Go EOQ Manufacturing Model with Shortage = sqrt(2*Demand per Year*Order Cost*(Shortage Cost+Carrying Cost)/(Carrying Cost*Shortage Cost*(1-Demand per Year/Production Rate)))
Maximum Stock Out Manufacturing Model
​ LaTeX ​ Go Maximum Stock out Manufacturing Model = sqrt(2*Demand per Year*Order Cost*Shortage Cost*(1-Demand per Year/Production Rate)/(Carrying Cost*(Carrying Cost+Shortage Cost)))
EOQ Manufacturing Model with No Shortage
​ LaTeX ​ Go EOQ Manufacturing Model No Shortage = sqrt((2*Order Cost*Demand per Year)/(Carrying Cost*(1-Demand per Year/Production Rate)))
EOQ Purchase Model with No Shortage
​ LaTeX ​ Go EOQ Purchase Model No Shortage = sqrt(2*Demand per Year*Order Cost/Carrying Cost)

Maximum Inventory Manufacturing Model Formula

​LaTeX ​Go
Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model
Qmfg = (1-D/K)*EOQms-Q1

What is maximum inventory?

The maximum inventory is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation. The maximum level of inventory you should hold is equal to the sum of Expected sales, demand variation safety stock, and supply variation safety stock.

How to Calculate Maximum Inventory Manufacturing Model?

Maximum Inventory Manufacturing Model calculator uses Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model to calculate the Maximum Inventory Manufacturing Model, The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation. Maximum Inventory Manufacturing Model is denoted by Qmfg symbol.

How to calculate Maximum Inventory Manufacturing Model using this online calculator? To use this online calculator for Maximum Inventory Manufacturing Model, enter Demand per Year (D), Production Rate (K), EOQ Manufacturing Model with Shortage (EOQms) & Maximum Stock out Manufacturing Model (Q1) and hit the calculate button. Here is how the Maximum Inventory Manufacturing Model calculation can be explained with given input values -> 97.4437 = (1-10000/20000)*500-152.5563.

FAQ

What is Maximum Inventory Manufacturing Model?
The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation and is represented as Qmfg = (1-D/K)*EOQms-Q1 or Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model. Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year, Production Rate refers to the number of goods that can be produced during a given period of time, EOQ Manufacturing Model with Shortage is the order quantity a company should purchase to minimize inventory cost assuming demand is constant & The Maximum Stock out Manufacturing Model is the maximum capacity of a business to stock goods.
How to calculate Maximum Inventory Manufacturing Model?
The maximum inventory manufacturing model is based on the number of units you expect to sell during the replenishment lead time, and the demand and supply variation is calculated using Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model. To calculate Maximum Inventory Manufacturing Model, you need Demand per Year (D), Production Rate (K), EOQ Manufacturing Model with Shortage (EOQms) & Maximum Stock out Manufacturing Model (Q1). With our tool, you need to enter the respective value for Demand per Year, Production Rate, EOQ Manufacturing Model with Shortage & Maximum Stock out Manufacturing Model and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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