COURSE : NDUSTR AL ENGINEERING LESSON: PRODUCTION MODEL

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MODEL 3 PRODUCTION MODEL This model is similar to first model EOQ. The only difference is that supply is gradual rather than instantaneous. If"P, is production rate and d' is demand rate or depletion rate, then each production run of T' length can be divided into 2 parts Build- Up Model Mo. Inv. Level I. tp is the time during which stock is piled up at Inves Level constant rate of (P-d) units/unit time. 2. (T-tp) is the time during which there is no Re-os der Level production and inventory decreases by demand rate d units/unit time.

MODEL 3 PRODUCTION MODEL 2. Max. In. Level (A Level Reorder where"Qw ts max. Inventory Level nd tp is production cydle ime. Level 2.

MODEL 3 PRODUCTION MODEL :(Ti . Poc.4 (ed) This is less than 1 Max. I. Level So, Eoa ?s more than 4 s nodel and Ttc s less than 1st model Level Level greaier -- than

QUESTION Annual Demand is 12,000 units. Production rate per month is 2,000 units and holding cost per unit per month is Rs 0.15 If unit cost is Rs 4/unit and set up cost is Rs 400/ Find I. Optimal lot size 2. Total cost/year 3. Maximum Inventory level 4. Production Time 5. Total Cycle Time

SOLUTION 12( oo.sxy + /2x120wytoo xi. &r(ton ) awentury Level 3266 ( 633 Production Tine P-cl V T266 3.266

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Harshit Aggarwal

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