Formulas Flashcards
Productivity=
Output/Input (ratio of output to input)
Process yield=
output of good product/quantity of raw material input
Efficiency=
(actual output/ effective capacity)*100%
Utilization=
(actual output/design capacity)*100%
Capacity cushion=
capacity - expected demand
Units of capacity needed
Processing time needed/processing time capacity per unit
Expected Value of Perfect Information (EVPI)=
Expected payoff under certainty -
expected payoff under risk.
Inventory turnover=
Annual costs of goods sold/ average inventory investment (ratio of
annual cost of goods sold to average inventory investment = how many times a year
the inventory is sold)
Effective capacity=
design capacity - allowances
Design capacity=
maximum designed output rate or service capacity
Job flow time=
amount of time from when a job arrives until it is finished
Job lateness=
actual completion date – due date
Makespan=
total time needed to complete a group of jobs from beginning of the first
job to completion of the last job.
Average number of jobs=
total flow time/makespan
Q= order quantity
sqrt(2DS/H)
