Process Types Job Shop | High Diff. Product | Low Vol. | Batch | Med. Diff. Product | Med. Vol. | Assembly/Workers Line | Med. Diff. Product | High Vol. | Machine Assembly | Low Diff. Product | High Vol. | Continuous | Low Diff. Product | Very High Vol. |
Inventory Costs

(Financial &) Non-Financial Holding:
Obscelence: Tech
Perishable Product: Foods
Shrinkage/Theft
Storage/OH: Insurance, security, real estate
Waiting and Quality

5 Reasons to Hold Inventory

Pipeline Inventory: Patient
Seasonal Inventory
Cycle Inventory: Economies of Scale
Decoupling/Buffers
Safety Inventory: Demand

Odds—Find flow rate, then Divide flow rate by Total number of people
E.g. If 20 consultant promote, 80 not promote the Probability of getting promoted = 20/100 = 20%

Process Analysis Formulas:
Setup + First Order Rush Time + (# of Remain Units x CT in Unit/Time)
***Make sure ALL UNITS OF TIME ARE SAME to compute—min:min, hr:hr, day:day

Labor Content Formulas:
IDLE TIME = Bottleneck Activity Time – Activity Time for that Step
**Compute for all steps, then add values if need total idle time.

LABOR CONTENT = Sum of Labor Content Time or Sum of Activity Time depends on Prob.

DL Cost in WORK CELL: Total time ONE unit (ALSO RUSH ORDER TIME) > Convert to HRS/UNIT then multiply by $/HR > $/Unit which is the direct labor cost

Number of Worker X Capacity per worker in UNIT/TIME = Demand Rate in UNIT/TIME

Capacity of Given B = 1 Unit/ X Time
B/ [Setup + (B X Time per unit OF SETUP STEP)

Little’s Law:
For COGS and Sales, convert both into units using information from Q.
FR = Units/yr. I = Units FT = Years Inv. Turn =