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Production Model
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This lesson throws light on production model.

Harshit Aggarwal
Cleared UPSC ESE twice with Rank 63 and 90 in mechanical engg. Got 99 percentile in GATE. Cracked ONGC, BHEL,ISRO, SAIL, GAIL successfully

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  2. ABOUT ME Graduated from NIT Nagpur in 2008 Cleared Engineering Services Examination (ESE-UPSC) Exam & Got the offer letter from most of the Maharatna and Navratna Companies * Cleared GATE Exam Rate, Review, Recommend, Share Follow me on Unacademy at: aggarwal

  3. 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.

  4. 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.

  5. 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

  6. 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

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