Operation Management Formular Sheet

Topics: Poisson distribution, Probability theory, Mean Pages: 4 (752 words) Published: February 20, 2013
Productivity = Units producedInput used (1-1)
Multifactor productivity (total factor) =
ductivity) qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqOutputLabor+Material+Energy+Capital+Miscellaneous (1-2)

Value-added time = Operation time/total time (H-B)

Utilization = Actual OutputDesign Capacity (S7-1)
Efficiency = Actual OutputEffective Capacity (S7-2)
Actual (Expected) output = (Effective Capacity)×(Efficiency) (S7-3) Break-even Analysis Notation:
BEPx = break-even point in units
BEP$ = break-even point in dollars
P = price per unit
x = # of units produced
TR = total revenue = Px
F = fixed costs
V = variable costs per unit
TC = total costs = F + Vx
TR = TC or Px = F+Vx
* BEPx = FP-V
BEP$ = F1-V/P
Profit = TR – TC = (P – V)x – F
Break-even in units = Total fixed costPrice-Variable cost (S7-4) Break-even in dollars = Total fixed cost1-Variable costSelling price (S7-5) (Multifactor) BEPUniti = BEP$ ×Fraction of TRSelling Price

Multiproduct Break-even in dollars (BEP$) = F1-ViPi ×(Wi) (S7-6) where i = each product
W = percent ea. product is of TR

Poisson distribution: P(x) = e-λλxx! for x = 0,1,2,3,4,… (D-1) where P(x) = probability of x arrivals
x = # of arrivals per unit of time
λ = average arrival rate
e = 2.7183 (which is the base of the natural logarithms)

Table D.2: Queuing Models Described in Module D
Model| Name (technical name in parentheses)| Example| Number of Channels| Number of Phases| Arrival Rate Pattern| Service Time Pattern| Population Size| Queue Discipline| A| Single-channel system (M/M/1)| Information counter at department store| Single| Single| Poisson| Exponential| Unlimited| FIFO| B| Multichannel (M/M/S)| Airline ticket counter| Multi-channel| Single| Poisson| Exponential| Unlimited| FIFO| C| Constant Service (M/D/1)| Automated car wash| Single...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Operations management Essay
  • operations management Essay
  • Operation management Essay
  • Operation Management Research Paper
  • Operations management Essay
  • operations management Essay
  • Operation Management Week 6 Essay

Become a StudyMode Member

Sign Up - It's Free