Equations

EOQ (Optimal Order Quantity) -

EOQ = Q* = (2DSH(U))\sqrt{\frac{2DS}{H\left(U\right)}})

D = Demand

S = Supply/Order Cost

H = Holding cost

U = Rate Per Unit (if applicable)

A company produces 2 products, X1 and X2. Production includes two steps: prep and assembly. Labor hours available for prep is 16 labor hours per day. Time available for assembly is 24 labor hours per day. Total material available for the day’s production is 500 pieces. The minimum daily production quotas for X1 and X2 are 100 and 200 units, respectively.

What is the objective function to Minimize total costs per day?

A retailer carries a product with sales of 1200 units/month. Ordering Costs are estimated to be $300 per order. The wholesale cost is 450 $/unit. Holding cost per unit is estimated to be 5% of the wholesale cost per annum.

Total Annual Inventory Cost = D*C + (Q/2)*hC + (D/Q)*

Expected Value = % chance * payoff amount

Expected Completion Time -

t=O+4(L)+P)6\frac{t=O+4\left(L\right)+P)}{6}

t = Expected Completion Time

O = Optimistic Time

L = Likely/Probable Time

P = Pessimistic Time