This paper is a book report on The Goal by Eliyahu Goldrat. The book is a
factious story about a dedicated plant manager named Alex Rogo who struggles to
save the plant from closure while trying to save his marriage. The Theory of
constraints is introduct
Total Cost of Outsourcing :
TCBuy = FCBuy + (VCBuy Q )
n
The Mean-
x=
x
i =1
i
Total Cost of Insourcing :
TCMake = FCMake + (VCMake Q )
n
Indifference Point :
(x
n
Standard Deviation
=
i =1
i
X
)
FCBuy + (VCBuy Q ) = FCMake + (VCMake Q )
2
n 1
x1 + x 2 +
Y = a + bx
A common tool of causal modeling is linear regression:
May be used in calculating seasonally adjusted forecasts by calculating Y and applying
the appropriate seasonality factor.
N=
DT + S
C
Exponential Smoothing:
Ft = Ft 1 + (At 1 - Ft 1)
N = n
OM 300 FINAL
Time Series: The future is a function of the past
Applied to reoccurring patterns, important for capacity
planning. Expressed in terms of the amount that actual
values differ from average values. Lowest.FN Also
cyclical variations in data occ
indexed prices. Competitive Bidding-used for infrequent
purchases, no relations. Logistics Management-objective is to
obtain efficient operations through the integration of all material
acquisition, movement, and storage activities. Outsource!
CH 6 MANAGI
Exam 2 Sheet
Supplement 6
Statistical Process Control: detect and eliminate assignable causes of variation
Natural Variations are the many sources of variation that occur within a process that is in statistical control
Assignable Variations are variations