Chapter 10 Average Time Average Time Normal time Standard Time Number of Observations Normal Time Standard Time Required sample size 1 Compute standard deviation s If desired accuracy h is expressed as an absolute amount substitute e for where e is the absolute amount of acceptable error h z s n 1 Required sample size Required sample size where accuracy level acceptable error desired in percent of the job element expressed as a decimal number of standard deviations required for the desired level of confidence standard deviation of the initial sample mean of the initial sample required sample size where 1 n required sample size z standard normal deviate for desired confidence level p estimated value of sample proportion h acceptable error level in percent as a decimal Chapter 11 Turnover Rate Turnover Rate Weeks of Supply Percent of Assets to Inventory Turnover Rate Percent invested in inventory 100 Week of Supply 52 Chapter 11s Percent of Shutdown Bullwhip Bullwhip Measure Holding Costs Holding Cost 365 Chapter 12 13 Dollar Volume Economic Order Quantity EOQ Total Cost EOQ Holding Cost 2 Set up Cost Total Cost Total Cost Including cost of material Safety Stock Reorder Point Annual Holding Cost 2 POQ 2 Reorder Point Q Q D S H 2 Number of pieces per order Optimal number of pieces per order EOQ Annual demand in units for the inventory item Setup or ordering cost for each order Holding or carrying cost per unit per year Quantity Discount Model where 2 Q Quantity ordered P Price per unit D Annual demand in units I Holding cost per unit per year S Ordering or setup cost per order expressed as a percent of price P Probabilistic Demand 2 2 Z Number of standard deviations Reorder point with safety stock Production Order Quantity POQ ROP d x L ss ROP Reorder point d daily demand L lead time ss safety stock Q p 2 DS H 1 d p Q2 2 DS H 1 d p 2 Q Number of units per order p Daily production rate H Holding cost per unit per year d Daily demand usage rate t Length of the production run in days Q H 1 d p S 2 2D Chapter 16 To solve for Setup Cost 1 2 1 Number of Kanbans containers Kanbans