# LECTURE 1 Inventory = flow rate * flow time 1 Park is open...

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LECTURE 1 Inventory = flow rate * flow time 1. Park is open from 8 am to 5 pm \$60 M sales over last year. Had \$20M inventory. Assuming inventory units (based on COGS) at \$1000/unit and sold for \$2000/unit, how fast does it turn inventory? . in 25 days-of-supply. Assuming 365 days/year, what is annual inventory turns?
Avg R = # of N / total time interval 25% . What is inventory cost for \$30 COGS item? Avg T = avg of each N’s flow time (weighted Inventory cost= 25% . What is inventory cost for \$30 COGS item?
average) Per-unit inventory cost = annual inventory cost/annual inventory turns
LECTURE 2 Utilization = R/capacity Supply constrained = C<D Demand constrained = C>D Cycle Time = 1/R (time of longest step) Flow time = I/R Labor content = sum of all P CODL = N*total wages/unit of time * cycle time Labor utilization = labor content*R /N Labor content/(N * cycle time) Takt time = time b/t when flow units are demanded= 1/D ( available time/ available quantity) Target manpower = labor content/takt time; min # of workers needed to satisfy demand Line balancing = find min. Cycle time Labor capacity = N/(labor content) Time thru empty worker-paced =sum of P Time thru empty machine (conveyor)=number of resources in sequence *P(bottleneck) Time to produce N Units Full system = N*cycle time Empty worker-paced = sum of P+(N-1)*cycle time OR