L4M7 Whole Based Costs Flashcards
What is a dolly?
Dollies are also known as rolling platforms or furniture dogs. They can be used for quick loading and moving boxes or bins. A dolly is equipped with castor wheels and therefore extremely manoeuvrable, making them easy to use in narrow spaces or corridors.
What is a pallet?
Shelf trolleys for order picking
This is mainly used for transporting several, lighter items at the same time. These are often used to collect orders in a warehouse, so as an order picking trolley, as a display in shops or in workshops to get several materials at the same time at a workbench/workplace as grab stock.
What is Economic Order Quantity (EOQ)
The economic order quantity (EOQ) is a company’s optimal order quantity that meets demand while minimizing its total costs related to ordering, receiving, and holding inventory. Demand from last year was 10,000 units. The average order cost was $5,000. The holding cost is $3 per unit, per year. Based on this company’s results, the economic order quantity is 5,774 units per order, roughly twice per year.
EOQ = √ [2 x D x S / H]
= √ [ (2 x 10,000 x $5,000) / $3]
= √ [33,333,333.33]
= 5,774 units
What is a holding cost?
Storage/handling costs.
What are the costs used in calculating EOQ?
Three Variables (or Inputs) Used to Calculate EOQ
There are several variations of the formula used to calculate EOQ. One popular EOQ formula is based on these variables, also called inputs:
D = Demand in units (annual)
S = Order cost
H = Holding costs (per unit, per year) EOQ = √ [2DS/H]
What is Kaizen?
Creating small positive changes to eventually reap major improvements.
What is Lean?
Define value, map value stream, create flow, establish pull and pursue perfection.
Who created Lean?
Tai Chi Ono and Mr Toyota
Womack & Jones
Who was the first to use lean theory?
Henry Ford - cars
What does MHE stand for?
Materials Handing Equipment
What is a vehicle dock?
A space to quickly load and unload goods e.g. McD drivethru
What are sack trucks?
Sack trucks are designed to transport heavy items using an L-shaped ledge on two wheels with a handle to push the load. Also known as sack barrows or sack trolleys, they can prevent injuries associated with lifting and moving heavy objects by hand.
GTIN stands for?
Global Trade Information Number
Bullwhip effect
Ineffectual supply predictions which means more inventory.
What does MPS stand for?
Master Production Schedule
