F S C M

FORMULA SHEET

Anais
Jungpeter
2021 -
2022

Maastricht
University
International Business
Fundamentals supply chain
of
Management
 CH A P T E R 2

s means not on formula sheet

order
always same

:
5

6
7-

Rea = ( s -

COGS ) -
( ✓ F- + FE ) •
S

✗ s ( I + AR + OCA + FA )

(①-②)①_(③+④)_
ROA = .
①
✗
⑤ +
⑥ + ⑦ 1- ⑧
 CHAPTER 4

House Of Quality

• Value Analysis
> Risk
Priority Number ( RPN ) =
severity . occurrence .
.by
undetectable
✗
 CHAPTER 3

• Utilization

> U ( Max = actual orders 100

'

1
capacity )
. ,

✗
Max .

capacity

U actual orders 100

'

> ( efficient capacity, ) = . / .

✗
effective capacity

• Effective capacity
Effective
capacity design capacity utilize
'

>
✗
= .

planned
• Maximum capacity / output
Maximum design capacity
>
✗ capacity =

> Max capacity = capacity bottleneck works 1-at

'

✗
( overall process )

> Ex : here 275 boards / hour

,

• total capacity of parallel process

s
total capacity = E individual capacities
✗

> Ex : here 400 boards / hour

,

'

workstat W Z W 3 WU
^

• flow time

> with I =
inventory
TH =
throughput

•
Capacity Requirements
>
Cap .

Reg .
=
E. ( demand forecast .
processing time)
✗
total working time
• Cycle time
/ cycle time = time

process
spent at an operate in the overall
)
↳ Cycle time = TH =
2 /F
✗
capacity capacity
" "
it at rate of
>
gives answer like must
"
run a
"
15 times an hour

to be transformed into every four minutes

cycle time = 4 minutes

• Wait time

>

with

CHAPTER 5

↓
☐ & E must be done before
moving on to F-

• take time

•
Nbr of workstations

>
✗

>
Always round
up .

• Efficiency

>

• Idle time

idle time takt time time work state

spent at
> = -

✗
 CHAPTER 14

Master Production Schedule ( M Ps )

•
Projected on -
hand inventory
>
×

with I =
Projected on - hand inventory
Product
'
MPs = Master Schedule
F = Forecast
co = Actual customer orders

• Available to promise
>
×

/ > ECO until next MPs

> only for week 2

Material
Requirement Planning

ex : To make 100
grill sets
too

> 600 wood blocks

1 co
too
100 10 ,
>
A
(2)
noo noo ZCC 100 100 100 zoo 100 too zoo 800

B. (2) C (1)
^" ^ " noo

means
you need 2 B noo
-

and 2 C to make ^ A

multiply all by 2 to

get 2 A .

> Bill Of Materials ( Bon )

• Gross
Requirements
GR MPS
item) ( final item )
> =
✗ ( final

> GR
✗ ( intermediate item )= -
RC upper item )
. nbr inter
to make
.
items needed
1
upper
item
)
intermediate item
appears multiple
> if
• Net
Requirements times in Bill of materials

>

with GR = Gross Requirements

I = Available Inventory
SR = Scheduled Receipts
• Available Inventory
>

with PR = Planned Order Receipts

• Planned order Receipt ( starts after lead time )

zPR±= Net
Requirements ,
• Planned Order Releases ( starts first week )

]
Planned Order Releases = Planned Order Receipts
✗
shifted to the left by lead time

> if FOQ of an item =

×
,

to order lots of
you need
by ✗

1 round
→
planned order
receipts
>
must be rounded to
up
c- a
multiple of ✗ .
 CHAPTER 6

Allowable 1 Acceptable
•
Range
Allowable Allowable difference 2
>
range = .

( )
•
Sigma level o

level ( if sided )
Sigma =
Sigma 2 two -

> .

if level of
> ex : 6
sigma quality → 0 = 12

• Allowable Standard Deviate

> Allowable SD = Allowable

Range
✗

Sigma level

CHAPTER 7

•
Inventory Turnover

>

with COGS =
goods sold
costs of
I inventory
average
=

•
Days Of
Supply
>

with I
Inventory
=

d demand
=
Expected
Continuous Review Model

• Number of orders
placed each
year
> N = annual demand

quantity
✗ order

•
Average Inventory
> I = Q
✗
I

Total
•
Acquisition Cost

for
> ×
→ version Quantity
Discount is on the

formula sheet

• Economic Order
Quantity
> with D= Annual Demand
Co =
Ordering costs
→ normal
rounding Ci =
Inventory carrying costs
U = cost per unit

• Reorder Point

> with

• When there are

Quantity Discounts

1. calculate EOQ

> discounted cost unit

per

2. calculate TAC ( at )

>

where co =
Ordering costs

D = Annual demand
Q = Order Quantity
Ci Costs
=
Inventory holding
U = Cost Unit
per

> discounted cost unit

per
 for Q :
>

• If EOQ < discounted order Q → use disc .

order Q
• If F- OQ > discounted order Q → use EOQ

• Standard deviation of demand during lead time

>

with

•
Safety stock

>

with

PS : 2 can be found in a table of cumulative probabilities

of the normal distribution

• ROP with safety stock

>
×

•
Average Inventory with safety stock

>
×

Periodic review model

•
Uncertainty period
with
>
×

• Order
Quantity
>
with
×
<
Single Period Inventory model

• Cost of a unit stock out

>
×

•
Cost of
being overstocked by 1 unit

>
×

Level
•
Target Service

>
×
→ TSL =
probability of
meeting all demand
for an item

• Order
Quantity
>
×

with Expected demand =

previous year 's demand
SS = standard der .
demand . 2 from table at TSL %

Root Rule
•
Square
> with
×

'
of locate the quantity
> impact of
changing nbr on of inventory
held .

CHAPTER to

the
• Score of
weighted point model

>
✗
Score =
weight .
rating
• Costs of in
sourcing
> In sourced costs = fixed costs -1 variable costs .
Production
✗

• Costs of outsourcing

Outsourced costs = Cost unit Production

>
per
.

CHAPTER 11

• In transit inventory holding cost

>
✗

of
• Total cost transportation method

>
×

Center Method
Of
Gravity
• ✗ coordinate

>
with

•
Y coordinate

>

CHAPTER 12

model
•
Moving average forecasting
>

with

•
Weighted average forecasting model

>

with
•
Exponential Smoothing Model

>

•
Exponential Smoothing With Trend Effects

>

where

•
Forecasting bias

• Mean Percent Error

>
✗

• Mean Absolute Deviation

>

Mean Absolute
•
Percentage Error

>
×

• Mean
Squared Error

>
×

• Forecast Error Variance

> with
×

Root
• Mean Squared Error

>
×

•
Tracking signal
>