Maximum Inventory Manufacturing Model Calculator

✖Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.ⓘ Demand per Year [D]			+10% -10%
✖Production Rate refers to the number of goods that can be produced during a given period of time.ⓘ Production Rate [K]			+10% -10%
✖EOQ Manufacturing Model with Shortage is the order quantity a company should purchase to minimize inventory cost assuming demand is constant.ⓘ EOQ Manufacturing Model with Shortage [EOQ_ms]			+10% -10%
✖The Maximum Stock out Manufacturing Model is the maximum capacity of a business to stock goods.ⓘ Maximum Stock out Manufacturing Model [Q₁]			+10% -10%

✖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 [Q_mfg]

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Formula

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Maximum Inventory Manufacturing Model

Formula

`"Q"_{"mfg"} = (1-"D"/"K")*"EOQ"_{"ms"}-"Q"_{"1"}`

Example

`"97.4437"=(1-"10000"/"20000")*"500"-"152.5563"`

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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
Q_mfg = (1-D/K)*EOQ_ms-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

Q_mfg = (1-D/K)*EOQ_ms-Q₁ --> (1-10000/20000)*500-152.5563

Evaluating ... ...

Q_mfg = 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)

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Credits

Created by Suman Ray Pramanik

Indian Institute of Technology (IIT), Kanpur

Suman Ray Pramanik has created this Calculator and 50+ more calculators!

Verified by Payal Priya

Birsa Institute of Technology (BIT), Sindri

Payal Priya has verified this Calculator and 1900+ more calculators!

< 12 Manufacturing and Purchase Model Calculators

EOQ Manufacturing Model with Shortage

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

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)))

Total Optimum Cost for Purchase Model

Go Total Optimum Cost for Purchase Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*Shortage Cost/(Shortage Cost+Carrying Cost))

Maximum Inventory Purchase Model

Go Maximum Inventory Purchase Model = sqrt(2*Demand per Year*Order Cost/Carrying Cost*(Shortage Cost/(Shortage Cost+Carrying Cost)))

EOQ Purchase Model with Shortage

Go EOQ Purchase Model = sqrt(2*Demand per Year*Order Cost/Carrying Cost*((Shortage Cost+Carrying Cost)/Shortage Cost))

Total Optimum Cost for Manufacturing Model

Go Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate))

EOQ Manufacturing Model with No Shortage

Go EOQ Manufacturing Model No Shortage = sqrt((2*Order Cost*Demand per Year)/(Carrying Cost*(1-Demand per Year/Production Rate)))

Total Cost for Purchase Model with No Shortage

Go Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost)

Maximum Inventory Manufacturing Model

Go Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model

EOQ Purchase Model with No Shortage

Go EOQ Purchase Model No Shortage = sqrt(2*Demand per Year*Order Cost/Carrying Cost)

Number of Order for Purchase Models with No Shortage

Go Number of Order Purchase Models no Shortage = Demand per Year/EOQ Purchase Model No Shortage

Maximum Stock Out Purchase Model

Go Maximum Stock out Purchase Model = EOQ Purchase Model-Maximum Inventory Purchase Model

Maximum Inventory Manufacturing Model Formula

Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model
Q_mfg = (1-D/K)*EOQ_ms-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 Q_mfg 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 (EOQ_ms) & 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 Q_mfg = (1-D/K)*EOQ_ms-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 (EOQ_ms) & 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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