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Operations Management Formula Guide

The document provides key formulas related to Operations Management, including Little's Law, Cycle Time, Utilization, and Economic Order Quantity (EOQ). It outlines calculations for costs associated with ordering and carrying inventory, as well as total costs under deterministic demands. Additionally, it includes formulas for determining order cycles and cost-time slopes.

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kajal
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3 views1 page

Operations Management Formula Guide

The document provides key formulas related to Operations Management, including Little's Law, Cycle Time, Utilization, and Economic Order Quantity (EOQ). It outlines calculations for costs associated with ordering and carrying inventory, as well as total costs under deterministic demands. Additionally, it includes formulas for determining order cycles and cost-time slopes.

Uploaded by

kajal
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Operations Management – Formula Reference Sheet

Little’s Law: L = λ × W
Cycle Time = 1 / Flow Rate
Utilization = Flow Rate / Capacity
Flow Rate (R) = min(Demand, Capacity)
Capacity = 60 / Processing Time (if time in seconds)
Pipeline Inventory = Lead Time × Demand Rate
Ordering Cost = (D / Q) × Co
Carrying Cost = (Q / 2) × Cc
Total Cost = Inventory Carrying Cost + Cost of Ordering + Shortage Cost
Total Cost (Deterministic Demands): TC = (Q / 2 × Cc) + (D / Q × Co)
Economic Order Quantity (EOQ) = √(2DS / H)
Number of Orders per Year = D / EOQ
Order Cycle = 365 / (D / EOQ)
Cost-Time Slope = (Crash Cost - Normal Cost) / (Normal Time - Crash Time)
Total Cost = Normal Cost + (Crash Cost Adjustments) - Indirect Cost

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