or Output Labor+Capital+Materials
Total measure
Tn = T1 ( nb) Where T1 = Time for first unit b = Slope of the learning curve Plant Location Methods: Weight X Score Centroid Method= Cx/y = Vi dix/y Vi
Fixed cost + Variable cost= Total cost ( P X Q ) of 1st location = ( P X Q ) of 2nd location
Cycle time =
Nt
Efficiency = t / N x C.T. = Theoretical number of cycles Actual number Mean flow time = Total flow time for all the jobs Number of jobs in the system Idle time on Machine A = Difference between the time when the last job in the optimum sequence is completed on the machine B and the time when the last job is completed on A
Idle time on machine B = (Time taken by machine A to compete the first job in the optimum sequence)+ [ (time when kth job starts on machine B) ( time when (K-1)th job finishes on B)]
MAD =[ I A t - Ft I ]/ n
i=1
Where t A F n I
= Period number = Actual demand for the period = Forecast demand for the period = Total number of periods I = A symbol used to indicate the absolute value Disregarding positive and negative signs
1 standard deviation = ( / 2 )x MAD or approximately 1.25 MAD Control Limits TS = RSFE MAD Where RSFE = The running sum of forecast errors, considering the nature of the error. ( For example, negative errors cancel positive errors and vice versa ) MAD = The average of all the forecast errors ( disregarding whether the deviations are positive or negative). It is the average of the absolute deviations. Simple Regression= y = a + bx b = nXY - X Y n X - (X) _ _ a = Y - bX where, X = value of independent factor Y = value of the dependent factor n = Number of value of the independent factor and the
Income Elasticity of Demand Method= Change in demand = (Q2 Q1) / (Q1 + Q2) Change in income ( I2 - I1 ) / (I1 + I2 ) where, Q2 = demand after change I 2 = income after change Q1 = demand before change I 1 = income before change Projected demand = Consumption per day x {( 1+ change in income) x income elasticity} Price Elasticity of Demand Method= = Change in demand = (Q2 Q1) / (Q1 + Q2) Change in price (P2 - P1 ) / (P1 + P2 ) where, Q2 = demand after change P2 = price after change Q1 = demand before change P1 = price before change Capacity utilization rate = Capacity used Best operating level Expected time (te) = to + 4 tm + tp 6 _________________________ cp = ( 12 + 22+ 32) Time Cost Ratio= Crash Cost Normal Cost Per Week Normal Time Crash Time Total float for activity Free float for activity Independent float ROL = DLT + SS + RS (I-j) = (Lej)- (EEi) - D (I-j) = (Eej-Eei) - D (I-j) = (Eej - Lei) - D
SS = K PER WEEK
Average Stock:= (Safety Stock + Order Quantity) 2 Working Stock:= Average Order Quantity ( Q /2 ) _____________ STANDERD DEVIATION Sd = ((Xn X) / n) EOQ = 2xAxa Cu x i Total Cost of materials plus = DP+D/Q x Co +Q/2 x PC1
__
L = standard deviation for lead time (L) = Economic Batch Quantity = cost (Rs.) (Cc) Q= (2AS/Cc) of
Q1 = ( non-instantaneous supply)
Q1 =
of [2 AS / (1- d ) X CI ]
p