Essay about Operations Administration - Assignment 3

Operations Management

Task 3

Queen: Difference between different types of EOQ.

Economic Purchase Quantity: The economic buy quantity (EOQ) is the set order volume (Q) that minimizes the overall annual costs of placing orders and holding inventory (TC). This kind of model is employed when

i) Demand is usually independent.

ii) Compute simply how much to purchase.

Economic Creation Quantity: The economic production quantity (EPQ) is the production quantity (lot size) that minimizes the overall annual expense of setups and holding products on hand. This type of model is used when ever

i) Demand is dependent.

ii) Compute simply how much to make previously.

Reorder Stage: EOQ lets us know about how very much to buy but not if you should order. ROP tells us regarding when to purchase. The reorder point takes place when the quantity on hand falls beneath a threshold value. You will find 4 determinants of the reorder point:

i) The rate of demand.

ii) The lead time.

iii) The level of require and/or lead variability.

The degree of stockout risk acceptable to management.

Chapter – 10

Q3)

Sample| Mean| Range

1| 3. 06| 0. 40

2| a few. 15| zero. 5

3| 3. 11| 0. forty one

4| several. 13| 0. 46

5| 3. 06| 0. 46

6| several. 09| 0. 45

Average| 3. 1| 0. forty five

The suggest of the means and ranges have been determined as 3. 1 and 0. 45 respectively. The quantity of observations, i. e, n = six

Thus through the table 10. 3 of the textbook, A2 = zero. 48, D3 = zero, D4 = 2 . 00 Computing Uppr Control Restrictions and Decrease Control Limits:

UCL(Mean) = Mean + A2 * Range Imply = several. 1 + 0. 48 * 2

sama dengan 3. you + 0. 96 = 4. summer

LCL(Mean) = Mean - A2 5. Range Suggest = several. 1 - 0. forty eight * a couple of

sama dengan 3. one particular – 0. 96 = 2 . 18

UCL(Range) = D4 * Mean Range = 2 . 00 2. 0. forty-five = zero. 9

LCL(Range) = D 3 * Mean Range sama dengan 0 * 0. forty five = zero

As can be seen from the above table, and assessing the UCL and LCL for the mean, it can be seen that both the most compact sample mean, 3. summer and the top sample imply, 3. 15, are both in the control limitations (calculated...