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POM All Formulas | PDF | Errors And Residuals | Output (Economics)
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POM All Formulas

The document discusses various operations management concepts and formulas related to productivity, plant location analysis, break even analysis, cycle time, efficiency, forecasting, regression, demand elasticity, capacity utilization, project scheduling, inventory management, and economic order quantity. Key concepts include outputs over inputs for productivity, weighted score and centroid methods for plant location, comparing total costs of locations in break even analysis, relating production time and required outputs for cycle time, comparing actual to theoretical cycles for efficiency, and formulas for forecasting errors, regression, demand and price elasticities, expected times, and inventory carrying costs.

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Bhawin Donda
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315 views4 pages

POM All Formulas

The document discusses various operations management concepts and formulas related to productivity, plant location analysis, break even analysis, cycle time, efficiency, forecasting, regression, demand elasticity, capacity utilization, project scheduling, inventory management, and economic order quantity. Key concepts include outputs over inputs for productivity, weighted score and centroid methods for plant location, comparing total costs of locations in break even analysis, relating production time and required outputs for cycle time, comparing actual to theoretical cycles for efficiency, and formulas for forecasting errors, regression, demand and price elasticities, expected times, and inventory carrying costs.

Uploaded by

Bhawin Donda
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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POM all Formulas Productivity = Outputs/Inputs Partial measure = Output or Output or Output Labor Capital Materials Multifactor = Output

Labor+Capital+Energy = Output Input or or Output Energy

or Output Labor+Capital+Materials

Total measure

Goods and services produced all resources used

Tn = T1 ( nb) Where T1 = Time for first unit b = Slope of the learning curve Plant Location Methods: Weight X Score Centroid Method= Cx/y = Vi dix/y Vi

Break Even Analysis=

Fixed cost + Variable cost= Total cost ( P X Q ) of 1st location = ( P X Q ) of 2nd location

Cycle time =

Production time per day Required outputs per day (units)

Nt

Sum of task times Cycle time

Efficiency = t / N x C.T. = Theoretical number of cycles Actual number Mean flow time = Total flow time for all the jobs Number of jobs in the system Idle time on Machine A = Difference between the time when the last job in the optimum sequence is completed on the machine B and the time when the last job is completed on A

Idle time on machine B = (Time taken by machine A to compete the first job in the optimum sequence)+ [ (time when kth job starts on machine B) ( time when (K-1)th job finishes on B)]

MAD =[ I A t - Ft I ]/ n
i=1

Where t A F n I

= Period number = Actual demand for the period = Forecast demand for the period = Total number of periods I = A symbol used to indicate the absolute value Disregarding positive and negative signs

1 standard deviation = ( / 2 )x MAD or approximately 1.25 MAD Control Limits TS = RSFE MAD Where RSFE = The running sum of forecast errors, considering the nature of the error. ( For example, negative errors cancel positive errors and vice versa ) MAD = The average of all the forecast errors ( disregarding whether the deviations are positive or negative). It is the average of the absolute deviations. Simple Regression= y = a + bx b = nXY - X Y n X - (X) _ _ a = Y - bX where, X = value of independent factor Y = value of the dependent factor n = Number of value of the independent factor and the

dependent variable used

Income Elasticity of Demand Method= Change in demand = (Q2 Q1) / (Q1 + Q2) Change in income ( I2 - I1 ) / (I1 + I2 ) where, Q2 = demand after change I 2 = income after change Q1 = demand before change I 1 = income before change Projected demand = Consumption per day x {( 1+ change in income) x income elasticity} Price Elasticity of Demand Method= = Change in demand = (Q2 Q1) / (Q1 + Q2) Change in price (P2 - P1 ) / (P1 + P2 ) where, Q2 = demand after change P2 = price after change Q1 = demand before change P1 = price before change Capacity utilization rate = Capacity used Best operating level Expected time (te) = to + 4 tm + tp 6 _________________________ cp = ( 12 + 22+ 32) Time Cost Ratio= Crash Cost Normal Cost Per Week Normal Time Crash Time Total float for activity Free float for activity Independent float ROL = DLT + SS + RS (I-j) = (Lej)- (EEi) - D (I-j) = (Eej-Eei) - D (I-j) = (Eej - Lei) - D

For P system = EOQ D RS


= D MAXIMUM DELAY PROBABILITY OF MAXIMUM DELAY NO. OF WEEKS / YEAR
L +R TIME IN WEEKS

SS = K PER WEEK

Average Stock:= (Safety Stock + Order Quantity) 2 Working Stock:= Average Order Quantity ( Q /2 ) _____________ STANDERD DEVIATION Sd = ((Xn X) / n) EOQ = 2xAxa Cu x i Total Cost of materials plus = DP+D/Q x Co +Q/2 x PC1
__

L = standard deviation for lead time (L) = Economic Batch Quantity = cost (Rs.) (Cc) Q= (2AS/Cc) of

x L 2 x Annual Demand x Set-up

Inventory carrying cost per unit per year

Q1 = ( non-instantaneous supply)

Q1 =

of [2 AS / (1- d ) X CI ]
p

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