Chapter 10 Average Time Normal time Standard Time Number of Observations Average Time  =       Normal Time  =.∗  Standard Time  =  1−  Required sample size = 󰇡ℎ󰇢 where h = accuracy level (acceptable error) desired in percent of the job element expressed as a decimalz = number of standard deviations required for the desired level of confidences = standard deviation of the initial sample= mean of the initial samplen = required sample sizeRequired sample size = 󰇡󰇢 If desired accuracy h is expressed as an absolute amount, substitute e for ℎ , where e is the absolute amount of acceptable error Compute standard deviation (s) = ∑󰇛−󰇜−1 Required sample size =󰇛1−󰇜ℎ where 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 Weeks of Supply Percent of Assets to Inventory Turnover Rate Chapter 11s Percent of Shutdown Bullwhip Measure Holding Costs Turnover Rate  = . Week of Supply   = ..    = .󰇣 52 󰇤 Bullwhip ℎ=     =  Holding Cost  ℎ =  ℎ ∗ 365 Percent invested in inventory % =    ∗100Chapter 12, 13 Dollar Volume EOQ Holding Cost Set-up Cost Total Cost Safety Stock Reorder Point POQ Economic Order Quantity (EOQ)   =  #   ℎ      =  Annual Holding Cost   =  2     = 2 = 2 ∗=  Q = Number of pieces per orderQ* = Optimal number of pieces per order (EOQ)D = Annual demand in units for the inventory itemS = Setup or ordering cost for each orderH = Holding or carrying cost per unit per yearTotal Cost =  + 2  Total Cost Including cost of material =  + 2 + Reorder Point =      = ∗  = #       Quantity Discount Model   = + +  = + 2+  ∗= 2 where Q = Quantity ordered P = Price per unitD = Annual demand in units I = Holding cost per unit per yearS = Ordering or setup cost per order expressed as a percent of price PProbabilistic Demand =   + Z = Number of standard deviations =      Chapter 16 # Kanbans Production Order Quantity (POQ)  ℎ = 󰇡.󰇢∗      󰇡 󰇢= 󰇡.󰇢2 󰇡.󰇢=   ℎ  −   ℎ   =−   = 󰇡󰇢   = 12 󰇣1 − 󰇡 󰇢󰇤  = 󰇣 − 󰇡 󰇢󰇤 ∗=  󰇣− 󰇡󰇢󰇤 Q = Number of units per order p = Daily production rateH = Holding cost per unit per year d = Daily demand/usage ratet = Length of the production run in daysNumber of Kanbans (containers) #  = 󰇡  󰇢+󰇡󰇢   Reorder point with safety stock ROP = d x L + ss ROP – Reorder point d – daily demand L – lead time ss – safety stock To solve for Setup Cost  )/(12*pdHDSQp 