1 Hours

t || Efficiency% t 100

3600 seconds / unit || Theoretical Min workstations TM(n)

r Units
c
nc
demand(aiting processing)(1 )
Balance Delay= 100%-Efficiency% || Idle Time= nc t || Containers: k
quantity c
CycleTIme:

Avg. Cycle Inventory: Q || Pipeline Inventory DL dL || Total annual inventory cost Annual Holding Q H Annual Ordering D S
2

2DS
EOQ
||| TBOEOQ
52weeks / year ||| Inventory Position OnHand Inventory Scheduled Receipts Backorder
H
D
R=Total demand during lead time= Demand/Day X Lead Time.
EOQ

Continuous Review System: Protection Interval=Lead time (L). SD of Demand during lead time (constant L)= dLT d L
SD of demand during lead time (variable L)= dLT L d2 d 2 LT 2 ||| Safety Stock= z dLT || Replenish if IP <=R
Reorder point (R) for constant lead time= dL Safety stock. For variable dL Safety stock ||| Order Quantity EOQ
Total Q System Cost : C

Q
D
H S (H Safety Stock)
2
Q

Periodic review system: Review Interval=Time btw orders =P. Protection Interval = P+Lead Time
SD of demand during protection interval= P L d P L ||| Safety Stock= z P L
Target Inventory level (T)= Average demand during protection + Safety stock = d(P L) Safety Stock
Order Quantity= Target Inventory level-Inventory position= T IP . Replenish every P Periods, order T IP Units.
Total P System Cost: C=

dP
D
H S (H Safety Stock)
2
dP

pd
Q pd
D
|| Annual Holding Cost C
(H) S
2 p
Q
p

Non Instantaneous replenishment: Max Inventory: Imax Q

Economic Production lost size ELS=

2DS
H

pd
ELS
|||| Time between orders (years) TBOELS
p
D

Production Time during each cycle= ELS/P

Quantity Discounts:

Q
D
H S PD ||| Payoff matrix : Payoff profitQ if Q D or pD loss(Q D) if Q D
2
Q

Forecast Error; Dt Ft || CFE

CFE
E t |||
||| E
||| MSE
n
n
2

(E

E) 2

n 1

|||

MAD E t

E
MAPE t 100% Linear Regression: Y=a+bx ||| Nave Forecasting, Forecast= D t
Dt
WMA= W1Dt W2 Dt 1 W3Dt 2 .... || Exponential Smoothening= Ft 1 Dt (1 )Ft or Ft (Dt Ft )

Tracking Signal

CFE
CFE
||| Trend Projection using Regression Ft a bt |||
or
MAD MADt

Exponentially Smoothed Error: MADt E t (1 )MADt 1