Operation Management

PROJECT
Presented by: Mustafa Almandouh
Belts Actual Data For

Forcasting
Month Exponential Error Error Squared
Belts

1 30000 30000 0 0 Alpha 0.6

EMA(choosen) 2
3
29000
29500
30000
29400
1000
100
1000000
10000
4 31000 29460 1540 2371600
5 27000 30384 3384 11451456
6 28000 28353.6 353.6 125032.96
7 30000 28141.44 1858.56 3454245.274
8 30300 29256.576 1043.424 1088733.644
9 26400 29882.6304 3482.63 12128714.5
10 25700 27793.0522 2093.052 4380867.344
11 24800 26537.2209 1737.221 3017936.33
12 26000 25494.8883 505.1117 255137.7834
13 25797.9553

MAD MSE
1554.327 3571247.622
Month Actual Data For Fabrics Exponential Error Error Squared

1 15000 15000 0 0 Alpha 0.6

Fabrics
forcasting
2 15200 15000 200 40000

3 16000 15120 880 774400

4 16500 15648 852 725904

5 16200 16159.2 40.8 1664.64

EMA
6 16700 16183.68 516 266586.3424

7 17550 16493.472 1057 1116251.415

8 18000 17127.3888 873 761450.3064

9 17700 17650.95552 49 2405.361018

(choosen)
10 18800 17680.38221 1120 1253544

11 17650 18352.15288 702 493018.6714

12 18220 17930.86115 289 83601.27268

13 18104.34446

MAD MSE

598 501711.4553
 Month Belt Fabrics
1 30,000 15,000
2 29,000 15,200
3 29,500 16,000
4 31,000 16,500
5 27,000 16,200

INVENTOR
6 28,000 16,700
7 30,000 17,550
8 30,300 18,000
9 26,400 17,700

Y AND EPQ
10 25,700 18,800
11 24,800 17,650
12 26,000 18,220
Total 337,700 203,520

Belt
Holding cost 16
Ordering cost 70
Demand for Belts 337700
Usage (U) 500
Production (P) 1500

Fabrics
Holding cost 10
Ordering cost 50
Demand for Fabrics 203520
Usage (U) 500
Production (P) 1500
U = D/ 365 = 365*500= 182500
(EPQ) method = QP* = √2DS/H √p/(p-u) = √(2*182500*50)/10 EPQ method Usage (U) = D/ 365 = 337700/365 = 925.2055
√1500/(1500-500) = 1654.539211 Fabrics
Cycle time = (QP*)/u = 1654.539211/500 = 3.309078422
days Since P>U, it’s economic production quantity (EPQ)
TC = (Imax/2) H + D/(QP*) S = [1/2* (QP*)/p (p-u)] H + QP* = √2DS/H √p/(p-u) = √(2*337700*70)/16 √1500/(1500-
D/(QP*) S 925.2055) = 2776.891 Belts
= [1/2* 1654.539211/1500 (1500-500)] (10) +
182500/1654.539211 * 50
= $11030.26141 Cycle time = (QP*)/u = 2776.891 / 925.2055 = 3.001378 days

TC = (Imax/2) H + D/(QP*) S = [1/2* (QP*)/p (p-u)] H +

D/(QP*) S
= [1/2* 2776.891/1500 (1500-925.2055)] (16) +
337700/2776.891 * 70
= $ 17025.51
 Weight East #1 East #2 West

lOCATION Initial Cost

Traffic
Maintenance
60%
10%
20%
100
40
20
150
40
25
140
30
18

S Near To
Customer
Infrastructure
5%
5%
25
12
10
8
12
15

Weight East #1 East #2 West

Initial Cost 60% 60 90 84
Traffic 10% 4 4 3
Maintenance 20% 4 5 3.6
Near To
5% 1.25 0.5 0.6
Customer
Infrastructure 5% 0.6 0.4 0.75
Total 1 69.85 99.9 91.95
Aggregate
plan,part
Calculate Quantity
Weeks 1 2 3 4 5 6 7 8Total Costs
Forecast 13000 13000 14000 15000 18000 13000 13000 13000 112000 Regular 3
Regular 13000 13000 13000 13000 13000 13000 13000 13000 104000 Overtime 1
Output
Part timr Inventory 1
(Regular+Overtime)
Overtime 2000 3000 3000 Backlog 4

1
Output-
0 0 1000 1000 -2000 0 0 0
Forecast

Beginning 0 0 0 1000 2000 0 0 0

Ending 0 0 1000 2000 0 0 0 0
Inventory
Average 0 0 500 1500 1000 0 0 0
Backlog

Calculate Cost
Period 1 2 3 4 5 6 7 8Total

Regular 39000 39000 39000 39000 39000 39000 39000 39000 312000
Output Parttime
Overtime 0 0 2000 3000 3000 0 0 0 8000
Aggregate Hire/Layoff

plan part2 Inve Average

ntory
Backlog
0
0
0 500 1500 1000
0 0 0 0
0
0
0
0
0 3000
0 0

3900 3900 4150 4350 4300 3900 3900 3900 3230

Total
0 0 0 0 0 0 0 0 00
 Jobs schedualing

FCFS (FIRST COME SPT (SHORTEST EDP (EARLIEST

FIRST SERVE) PROCESSING TIME) DUE DATE)

JOB FLOW DUE TRADY JOB FLOW DUE TRADY JOB FLOW DUE TRADY
JOB JOB JOB
TIME TIME DATE DAYS TIME TIME DATE DAYS TIME TIME DATE DAYS
A 5 5 8 0 A 5 5 8 0 B 6 6 5 1 Rule AFT AT AJWC Utilization
B 6 11 5 6 B 6 11 5 6 A 5 11 8 3 FSFS 19.6 11.2 2.8 0.357142857
C 9 20 10 10 D 7 18 12 6 C 9 20 10 10 SPT 19 10.6 2.714285714 0.368421053
D 7 27 12 15 E 8 26 10 16 E 8 28 10 18 EDD 20 11 2.857142857 0.35
E 8 35 10 25 C 9 35 10 25 D 7 35 12 23
TOTAL 35 98 56 TOTAL 35 95 53 TOTAL 35 100 55
thanks