1. Re-Order Point (ROP)
More Information on EOQ
Fixed order quantity models determine the specific point, R, at which an order will
be placed and the size of that order, Q.
o I.E. When the number of units in inventory on hand is < 135, place an
What is Customer Satisfaction?
Perception of product - expectations
Customer Satisfaction = f(Value)
What is Value? Value = f (Quality, Price)
What is Quality? Quality = Perception of Performance
Defined by the customer, hence very subjective. Multi-dime
Name: Victor de Zarraga
OEM/TOM Homework Assignment #3
Minutes in each work day:
Units produced per day:
Cable allignment & cutting 1.20
TOM Final Exam Review
Different Functions of Inventory:
To smooth production requirements
Buffers against uncertainty in demand and supply
To help hedge against price increases
To take advantage of quantity discounts
We want to minimize costs associated with ordering and holding inventory.
1. We calculate holding costs
Annual Holding Costs = (Avg. # of Units in Inventory) (Holding Cost Per Unit per Year)
Average # of Units in Inventory = Q/2
Dependent Demand Inventory
Material Requirements Planning (MRP)
Get the right amount of materials to the right place at the right time.
To support the master production schedule, or demand/forecasts for the end
Means for determining the number of pa
Benihana of Tokyo
What does Rockys Queue teach us?
o Queuing in organizations (sequential value addition)
Psychology of Queuing
o Unoccupied time feels longer than occupied time
Pre-process waits feel longer than in-process waits
Supply Chain Management
the sequence of organizations their facilities, functions, and activities - that are
involved in producing and delivering a product or service.
The design of our supply chain must be aligned with the nature of the demand
for our pr
Innovation and Technology Management
Industry Dynamics - the Source of Opportunities
I. Dominant Design
ii. Sustaining vs. Disruptive Innovations
Types of Innovation
1. Revolutionary or discontinuous
An innovation that creates a new market by a