Calculate the total cost of purchasing items based on various factors like demand, transaction cost, and order quantity. Optimize your order quantity for cost efficiency.

Calculate Purchase Cost

Purpose

The Calculate Purchase Cost function helps users determine the total cost associated with purchasing a certain quantity of items based on various input parameters.

Use Cases

• Businesses can use this function to calculate the total cost of ordering a specific quantity of items.
• Individuals can use this function to estimate the total cost of purchasing a certain quantity of products.

How to Use

1. Enter the required input values in the respective fields.
2. Click on the "Calculate" button to get the results.

Input Values

1. Demand: The quantity of items needed per year. (default unit is unit/yr)
2. Transaction Cost: The cost associated with each transaction. (default unit is UNC)
3. Unit Cost: The cost per unit of the item. (default unit is UNC/unit)
4. Cost of Capital: The cost of capital per unit per year. (default unit is UNC/UNC/yr)
5. Cost of Excess: The cost of excess inventory per unit per year. (default unit is UNC/unit/yr)
6. Order Quantity: The quantity of items to be ordered. (default unit is unit)

Output Values

1. Order Interval: The time interval between orders. (unit of measurement: month)
2. Material Cost Total: The total cost of materials per year. (unit of measurement: UNC/yr)
3. Inventory Cost Total: The total cost of inventory per year. (unit of measurement: UNC/yr)
4. Transaction Cost Total: The total transaction cost per year. (unit of measurement: UNC/yr)
5. Operational Cost Total: The total operational cost per year. (unit of measurement: UNC/yr)
6. Total Cost: The overall total cost per year. (unit of measurement: UNC/yr)
7. Number of Transactions: The number of transactions per year. (unit of measurement: 1/yr)
8. Economic Order Quantity: The optimal quantity to order for cost efficiency. (unit of measurement: unit)

Any other Instruction

• Make sure to enter accurate and realistic values for the input parameters to get meaningful results.
• If unsure about any input value, consult with a supervisor or colleague for assistance.

Code Analysis

The calculation involves determining various costs such as material cost, inventory cost, transaction cost, and operational cost based on the input values provided. The function uses these costs to calculate the total cost and suggest an optimal order quantity for cost efficiency.

Technical Parameter names

demand, transaction_cost, unit_cost, cost_of_capital, cost_of_excess, order_quantity, currency

Return Values

Order Interval, Material Cost Total, Inventory Cost Total, Transaction Cost Total, Operational Cost Total, Total Cost, Number of Transactions, Economic Order Quantity

Example Expressions

You can use the following expressions to directly evaluate in a non-interactive manner using eval():

purcost(demand='1500 unit/yr', transaction_cost='120 UNC', unit_cost='6 UNC/unit', order_quantity='400 unit')
purcost(demand='2000 unit/yr', transaction_cost='150 UNC', unit_cost='8 UNC/unit', order_quantity='500 unit')

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