Formula provided by professor:

EOQ=2DSHEOQ=2DSH

TC=SDQ+HQ2TC=SDQ+HQ2

PurchasingCost=PD

SigmaLTD=SQRT(L)*SigmaR

SigmaLTD=R*SigmaL

SL*=Cu/(Cu+Co)

RT=I

Rp=c/Tp

Cycle Time = CT=1/Rp

Takt Time = TT= 1/R

Cycle Inventory = Q/2

Average Inventory in the Presence of Safety Stock = Cycle Inventory +Isafety

IF the questions mention "Little field Game" then the following assumptions apply:

1. 9 day inventory reorder lead time
2. 3 contracts are options: 1^st contract option can make $750 if delivered in 2 days. 2^nd contract option can make $1000 if delivered in 1 day. 3^rd contract option can make $1,250 if delivered in day.
3. 1 order = 60 units per kit.
4. Each kit of 60 units cost $600.
5. Carrying cost of inventory is 10%.
6. Carrying 1unit per year = $ 60, same as $5 per month.
7. Obsolescence may outweigh carry cost.

Question 4:

Suppose the capacity of each machine in Station 1 in the Littlefield Technologies game is 13 orders per day. Suppose there are 2 machines in this station. The utilization of this station is 78%. On average, there are 15 loads in this station (either in the waiting line or on the machines). Assume 24 working hours per day.

Compute the flow time in this station.

Potential Answers:

17 hours.

8.16 hours.

9.7 hours.

17.75 hours.

6.48 hours.