Cycle Time 𝑇𝑐 = 𝑇𝑜 + 𝑇ℎ + 𝑇𝑡

Average Production Time 𝑇𝑝 = 𝑇𝑠𝑢 + 𝑇𝑐

60
Hourly Production Rate 𝑅𝑝 = 𝑇𝑝

Batch Processing Time 𝑇𝑏 = 𝑇𝑠𝑢 + 𝑄𝑇𝑐

𝑇𝑏
Average Production Time 𝑇𝑝 = 𝑄

Cycle Time of the Production Line 𝑇𝑐 = 𝑀𝑎𝑥 𝑇𝑜 + 𝑇𝑟

60
Ideal Production Rate 𝑅𝑐 = 𝑇𝑐
𝑀𝑇𝐵𝐹−𝑀𝑇𝑇𝑅
Availability (proportion) 𝐴 = 𝑀𝑇𝐵𝐹
Production Capacity 𝑃𝐶 = 𝑛𝐻𝑝𝑐 𝑅𝑝
𝑃𝐶 = 𝐻𝑝𝑐 ∑𝑛𝑖=1 𝑅𝑝𝑖

Average Hourly Plant Production 𝑅𝑝𝑝ℎ = ∑𝑛𝑖=1 ∑𝑗 𝑓𝑖𝑗 𝑅𝑝𝑖𝑗 ⁄𝑛𝑜𝑗

60 𝑇𝑠𝑢𝑖𝑗 +𝑄𝑗 𝑇𝑐𝑖𝑗
𝑅𝑝𝑖𝑗 = , 𝑇𝑝𝑖𝑗 =
𝑇𝑝𝑖𝑗 𝑄𝑗

Weekly Plan Production Rate for the Plant 𝑅𝑝𝑝𝑤 = 𝐻𝑝𝑤 𝑅𝑝𝑝ℎ
Utilization 𝑈𝑖 = ∑𝑗 𝑓𝑖𝑗
Workload 𝑊𝐿 = ∑𝑖 ∑𝑗 𝑄𝑖𝑗 𝑇𝑝𝑖𝑗
𝑜𝑗 𝑛
Manufacturing Lead Time for a Batch of a Part or Product 𝑀𝐿𝑇𝑗 = ∑𝑖=1 (𝑇𝑠𝑢𝑖𝑗 +
𝑄𝑗 𝑇𝑐𝑖𝑗 + 𝑇𝑛𝑜𝑖𝑗 )
𝑛𝑏 𝑀𝐿𝑇
∑𝑗=1 𝑗
Average Manufacturing Lead Time 𝑀𝐿𝑇 = 𝑛𝑏
𝑀𝐿𝑇 = 𝑛𝑜 (𝑇𝑠𝑢 + 𝑄𝑇𝑐 + 𝑇𝑛𝑜 )

𝑀𝐿𝑇 = 𝑛𝑜 (𝑀𝑎𝑥 𝑇𝑜 + 𝑇𝑟 ) + 𝑇𝑛𝑜 = 𝑛𝑜 𝑇𝑐 + 𝑇𝑛𝑜

Work-in-Process 𝑊𝐼𝑃 = 𝑅𝑝𝑝ℎ (𝑀𝐿𝑇)

Total Annual Cost 𝑇𝐶 = 𝐶𝑓 + 𝐶𝑣 𝑄
𝐹𝑂𝐻𝐶
Factory Overhead Rate 𝐹𝑂𝐻𝑅 = 𝐷𝐿𝐶
𝐶𝑂𝐻𝐶
Corporate Overhead Rate 𝐶𝑂𝐻𝑅 = 𝐷𝐿𝐶
Equivalent Uniform Annual Cost 𝑈𝐴𝐶 = 𝐼𝐶(𝐴⁄𝑃, 𝑖, 𝑁)
𝑖(1+𝑖)𝑁
(𝐴⁄𝑃, 𝑖, 𝑁) = (1+𝑖)𝑁
−1

Hourly Rate to Operate the Machine 𝐶𝑜 = 𝐶𝐿 (1 + 𝐹𝑂𝐻𝑅𝐿 ) + 𝐶𝑚 (1 + 𝐹𝑂𝐻𝑅𝑚 )

𝑜 𝑛
Cost Per Piece 𝐶𝑃𝐶 = 𝐶𝑚 + ∑𝑖=1(𝐶𝑜𝑖 𝑇𝑝𝑖 + 𝐶𝑡𝑖 )