Finished Product Management: Best Inventory Calculation Method for Printing Enterprise Materials (2)

2. Practical economic batch of printed material stock

It is very rare to meet the above assumptions in real life, and printing companies are no exception. Therefore, in order to make the formula more targeted and operational, it is specifically introduced from the following two aspects:

1 There are economic batches under condition of quantity discount.

Under the condition of commercial discount (quantity discount), besides considering the order cost and storage cost, the economical batch should also consider the purchase cost. Therefore, the inventory purchase cost has already been directly related to the purchase amount, which is the relevant cost of decision-making.

Assume that in the previous example, if the order quantity exceeds 1000kg, a 2% batch price discount may be given; over 1200kg, a discount of 3%; over 1500kg, a discount of 4%, how much should the company purchase?

A. According to the basic model to determine the number of discount conditions, economic volume and total cost:

Total inventory cost: purchase cost + order cost + storage cost = 1600×10+1600/800×800+800/2×4=19200 (yuan)

B. Consider the cost factor of different batches to calculate the total inventory cost:

I. The purchase volume is between 1000kg and 1200kg and you can enjoy 2% price discount. Within this range, item-by-item calculations can find that the closer the economic volume to the price deduction limit, the lower the total cost. Within the range of batches that can enjoy 2% price concessions, the batch with the lowest total cost is 1000 kg. The total cost of inventory = 1600 × 10 × (1-2%) +1600/1000 × 800 +1000/2 × 4 = 18960 (yuan)

II. Similarly, the purchase volume is between 1200kg and 1500kg, and you can enjoy a 3% price discount. The batch with the lowest total cost is 1200kg. The total cost of inventory = 1600 × 10 × (1-3%) +1600/1200 × 800 +1200/2 × 4 = 18987 (yuan)

III. More than 1500kg of purchase volume, enjoy 4% price concessions, inventory total cost = 1600 × 10 × (1-4%) +1600/1500 × 800 +1500/2 × 4 = 19213 (yuan)

By comparison, it can be found that, within the range of batches under various price conditions, the purchase volume with the lowest inventory total cost is 1000 kg. Therefore, the supplier proposes several quantity discounts on materials, and the optimal quantity discount plan should be selected through comparative analysis so as to achieve the purpose of determining the best economic batch quantity.

2 factors under economic conditions of uncertainty.

Some of the preceding economic batches are calculated under certain conditions, but there are many uncertainties in the actual production and operation of printing companies. There are two main types:

First, the delivery time is uncertain; second, the consumption demand is uncertain. They have different effects on the calculation of the economic volume, and the printing company should, according to different circumstances, establish the corresponding material insurance reserve of the printing enterprise without affecting the revenue.

The calculation of insurance reserves usually adopts the annual total inventory cost expected value method, and calculates the annual inventory cost of different insurance reserves, that is, the sum of annual out-of-stock costs and annual storage costs, and chooses the insurance reserve with the smallest annual total inventory cost as the best Insurance reserves.

Through the analysis of printing material inventory costs and economic batch determination methods, printing companies can generally solve the problem of the method of reasonable inventory of material inventory, and then achieve the purpose of accelerating the inventory turnover of materials, saving capital, reducing costs, and improving the profitability of enterprises. . How does a printing company consider the influence of uncertain factors (such as unstable price of printing materials, temporary shortage of corporate funds, etc.), and controls the corresponding inventory costs incurred by the enterprise within the minimum limit, and it should be determined according to the specific conditions of the enterprise. At the same time, enterprises using MRPII or ERP systems can use these calculation methods to quickly and reasonably determine parameters such as safety stocks, batch order days, minimum batch orders, and lot order multiples for each item in the system to improve MRPII or ERP systems. The use of results, truly save, efficient material inventory management.