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    Operations Management Formulas

    Uploaded by

    Navi Singh
    This document contains mathematical formulas and definitions related to operations management concepts like inventory management, forecasting, production planning, and quality control. Some key points covered include: - Formulas for calculating economic order quantity, total inventory costs, safety stock, reorder points, and target inventory levels for continuous and periodic review inventory systems. - Definitions of forecast error, mean absolute deviation, mean absolute percentage error, and other metrics used to evaluate forecast accuracy. - Equations for linear regression, naive forecasting, weighted moving averages, and exponential smoothing forecasting methods.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Operations Management Formulas

    Uploaded by

    Navi Singh
    2K views1 page
    This document contains mathematical formulas and definitions related to operations management concepts like inventory management, forecasting, production planning, and quality control. Some key points covered include: - Formulas for calculating economic order quantity, total inventory costs, safety stock, reorder points, and target inventory levels for continuous and periodic review inventory systems. - Definitions of forecast error, mean absolute deviation, mean absolute percentage error, and other metrics used to evaluate forecast accuracy. - Equations for linear regression, naive forecasting, weighted moving averages, and exponential smoothing forecasting methods.

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    Operations Management Formulas

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    This document contains mathematical formulas and definitions related to operations management concepts like inventory management, forecasting, production planning, and quality control. Some key points covered include: - Formulas for calculating economic order quantity, total inventory costs, safety stock, reorder points, and target inventory levels for continuous and periodic review inventory systems. - Definitions of forecast error, mean absolute deviation, mean absolute percentage error, and other metrics used to evaluate forecast accuracy. - Equations for linear regression, naive forecasting, weighted moving averages, and exponential smoothing forecasting methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views1 page

    Operations Management Formulas

    Uploaded by

    Navi Singh
    This document contains mathematical formulas and definitions related to operations management concepts like inventory management, forecasting, production planning, and quality control. Some key points covered include: - Formulas for calculating economic order quantity, total inventory costs, safety stock, reorder points, and target inventory levels for continuous and periodic review inventory systems. - Definitions of forecast error, mean absolute deviation, mean absolute percentage error, and other metrics used to evaluate forecast accuracy. - Equations for linear regression, naive forecasting, weighted moving averages, and exponential smoothing forecasting methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    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

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