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  • Epq 25.4.2023

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    Majid Khan
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    This document outlines the inputs and calculations for a production model. It provides details on the fixed and variable costs of production like the setup cost, holding cost per unit, storage cost, demand per day, and production capacity. It then calculates values like the percentage of production used and inventory levels. The key outputs are the optimal production quantity to minimize total annual costs, the number of production runs needed per year, and the total annual and overall costs.

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    EPQ_25.4.2023

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    This document outlines the inputs and calculations for a production model. It provides details on the fixed and variable costs of production like the setup cost, holding cost per unit, storage cost, demand per day, and production capacity. It then calculates values like the percentage of production used and inventory levels. The key outputs are the optimal production quantity to minimize total annual costs, the number of production runs needed per year, and the total annual and overall costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views2 pages

    Epq 25.4.2023

    Uploaded by

    Majid Khan
    This document outlines the inputs and calculations for a production model. It provides details on the fixed and variable costs of production like the setup cost, holding cost per unit, storage cost, demand per day, and production capacity. It then calculates values like the percentage of production used and inventory levels. The key outputs are the optimal production quantity to minimize total annual costs, the number of production runs needed per year, and the total annual and overall costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    PRODUCTION MODEL

    INPUTS
    Fixed Setup cost ($) 50
    Annual Holding Cost Percentage 0
    Annual Storage Cost Per Unit 0.1
    Demand per day (d) 40
    Working Days 300
    Annual Demand (D) 12000
    Production per day (p) 100
    Unit Production Cost 1 (Not provided for every problem)

    Calculated values
    percentage of production used (d/p) 0.4
    percentage of production add to inventory (1- d/p) 0.6
    Unit Holding Cost (H) 0.1

    Production Model
    Production Quantity (Q) 20 *Changing cell in solver
    Maximum Inventory 12 Q*(1-(d/p))
    Production run per year (D/Q) 600
    Length of Production Run (Q/p) 0.2 days
    Cycle times (days) (Q/d) 0.5 days percentage of time produc

    Monetary Values
    Annual fixed setup cost 30000 production runs per year*S
    Annual Holding cost 0.6 Maximum inventory /2 * H
    Total Annual Cost 30000.6 Holding + setup (objective in solver)
    Annual Production cost 12000
    Total Overall Cost 42000.6
    ery problem)

    percentage of time production running = 0.4

    ective in solver)

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