Solution to point b)

In both cases the cost of stock (carrying costs) for a generic component is:

(1)

where vi depends on the type of component (processor, memory of hard drive), while σ_{LT} depends on the Demand of component (see point a) above) and Q_{i} on both Demand and type.

Since in both cases the number of different component per each type, n_{dct}, is the same (27 in Present Case, 9 in Future Case), we can calculate the total Carrying Cost using this formula:

(2)

Present Case

In the following index i is used for indicating the type of component:

i=1 means processor;

i=2 means memory;

i=3 means hard disk.

To evaluate Qi for each type of component, the EOQ formula is used. Results are:

Order Quantity | Value | Unit |

Q |
6000 | items/order |

Q_{2} |
8485 | items/order |

Q_{3} |
6708 | items/order |

By using 1 it is then possible to evaluate the carrying cost of each component type:

Carrying cost for each component type | €/year |

-Carrying costs_{1} |
7923.49 |

-Carrying costs_{2} |
4853 |

-Carrying costs_{3} |
6622 |

By using 2 Total costs of Stocks is:

Number of Different component Type | 27 |

Total cc | 516472.784 |

Future Case

Qi Results are (3 X Q_{i} Present Case):

Order Quantity | Value | Unit |

Q |
18000 | items/order |

Q_{2} |
25456 | items/order |

Q_{3} |
20125 | items/order |

carrying cost of each component type (3 X carrying costs_{i} Present Case):

Carrying cost for each component type | €/year |

-Carrying costs_{1} |
23770 |

-Carrying costs_{2} |
13749 |

-Carrying costs_{3} |
19866 |

By using 2 Total costs of Stocks is:

Number of Different component Type | 3 |

Total cc (Total cc Present Case/3) | 172157.6 |