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<h1 class="mume-header" id="mba-511-final-exam-study-guide">MBA 511 Final Exam Study Guide</h1>
<hr>
<h3 class="mume-header" id="calculating-averages">Calculating averages</h3>
<h6 class="mume-header" id="simple-moving-average">Simple moving average</h6>
<p><a href="https://www.codecogs.com/eqnedit.php?latex=\frac{\sum_{1}^{n}W_i}{n}" target="_blank"><img src="https://latex.codecogs.com/gif.latex?\frac{\sum_{1}^{n}W_i}{n}" title="\frac{\sum_{1}^{n}W_i}{n}"></a></p>
<p>In other words, the average of the N most recent items</p>
<h6 class="mume-header" id="weighted-moving-average">Weighted moving average</h6>
<p><a href="https://www.codecogs.com/eqnedit.php?latex=$X_1*W_1+X_2*W_2+X_3*W_3+...+X_n*W_n$" target="_blank"><img src="https://latex.codecogs.com/gif.latex?$X_1*W_1+X_2*W_2+X_3*W_3+...+X_n*W_n$" title="$X_1*W_1+X_2*W_2+X_3*W_3+...+X_n*W_n$"></a></p>
<p><a href="https://www.codecogs.com/eqnedit.php?latex=Where&space;$\sum_{n}W_n&space;=&space;1$" target="_blank"><img src="https://latex.codecogs.com/gif.latex?Where&space;$\sum_{n}W_n&space;=&space;1$" title="Where $\sum_{n}W_n = 1$"></a></p>
<h6 class="mume-header" id="exponential-smoothing">Exponential Smoothing</h6>
<p><img src="expsmooth.gif" alt="Exponential Smoothing"></p>
<p><img src="fsubt.gif" alt=""> The exponentially smoothed forecast for period <em>t</em><br>
<img src="fsubtmone.gif" alt=""> The exponentially smoothed forecast made for the prior period <br>
<img src="asubtmone.gif" alt=""> The actual demand in the prior period<br>
<img src="alpha.gif" alt=""> The desired response rate, or smoothing constant</p>
<h6 class="mume-header" id="littles-law">Little's Law</h6>
<p><a href="https://www.codecogs.com/eqnedit.php?latex=$L&space;=&space;\lambda&space;W$" target="_blank"><img src="https://latex.codecogs.com/gif.latex?$L&space;=&space;\lambda&space;W$" title="$L = \lambda W$"></a><br>
Where L is Average number of customers in the store<br>
<a href="https://www.codecogs.com/eqnedit.php?latex=$\lambda$" target="_blank"><img src="https://latex.codecogs.com/gif.latex?$\lambda$" title="$\lambda$"></a> is the effective arrival rate<br>
W is Average time customer spends in store</p>
<hr>
<h3 class="mume-header" id="chapter-01">Chapter 01</h3>
<p><span class="katex"><span class="katex-mathml"><math><semantics><mrow><mi>R</mi><mi>e</mi><mi>c</mi><mi>e</mi><mi>i</mi><mi>v</mi><mi>a</mi><mi>b</mi><mi>l</mi><mi>e</mi><mtext> </mtext><mi>T</mi><mi>u</mi><mi>r</mi><mi>n</mi><mi>o</mi><mi>v</mi><mi>e</mi><mi>r</mi><mo>=</mo><mfrac><mrow><mi>A</mi><mi>n</mi><mi>n</mi><mi>u</mi><mi>a</mi><mi>l</mi><mtext>  </mtext><mi>C</mi><mi>r</mi><mi>e</mi><mi>d</mi><mi>i</mi><mi>t</mi><mtext>  </mtext><mi>S</mi><mi>a</mi><mi>l</mi><mi>e</mi><mi>s</mi></mrow><mrow><mi>A</mi><mi>v</mi><mi>e</mi><mi>r</mi><mi>a</mi><mi>g</mi><mi>e</mi><mtext>  </mtext><mi>A</mi><mi>c</mi><mi>c</mi><mi>o</mi><mi>u</mi><mi>n</mi><mi>t</mi><mtext>  </mtext><mi>R</mi><mi>e</mi><mi>c</mi><mi>e</mi><mi>i</mi><mi>v</mi><mi>a</mi><mi>b</mi><mi>l</mi><mi>e</mi></mrow></mfrac></mrow><annotation encoding="application/x-tex">Receivable \: Turnover = \frac{Annual \;Credit\;Sales}{Average\;Account\;Receivable}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.69444em;vertical-align:0em;"></span><span class="mord mathit" style="margin-right:0.00773em;">R</span><span class="mord mathit">e</span><span class="mord mathit">c</span><span class="mord mathit">e</span><span class="mord mathit">i</span><span class="mord mathit" style="margin-right:0.03588em;">v</span><span class="mord mathit">a</span><span class="mord mathit">b</span><span class="mord mathit" style="margin-right:0.01968em;">l</span><span class="mord mathit">e</span><span class="mspace" style="margin-right:0.2222222222222222em;"></span><span class="mord mathit" style="margin-right:0.13889em;">T</span><span class="mord mathit">u</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mord mathit">n</span><span class="mord mathit">o</span><span class="mord mathit" style="margin-right:0.03588em;">v</span><span class="mord mathit">e</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.3612159999999998em;vertical-align:-0.481108em;"></span><span class="mord"><span class="mopen nulldelimiter"></span><span class="mfrac"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.8801079999999999em;"><span style="top:-2.6550000000000002em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight">A</span><span class="mord mathit mtight" style="margin-right:0.03588em;">v</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight" style="margin-right:0.02778em;">r</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.03588em;">g</span><span class="mord mathit mtight">e</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight">A</span><span class="mord mathit mtight">c</span><span class="mord mathit mtight">c</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">t</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.00773em;">R</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">c</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">i</span><span class="mord mathit mtight" style="margin-right:0.03588em;">v</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight">b</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mord mathit mtight">e</span></span></span></span><span style="top:-3.23em;"><span class="pstrut" style="height:3em;"></span><span class="frac-line" style="border-bottom-width:0.04em;"></span></span><span style="top:-3.394em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight">A</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.07153em;">C</span><span class="mord mathit mtight" style="margin-right:0.02778em;">r</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">d</span><span class="mord mathit mtight">i</span><span class="mord mathit mtight">t</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.05764em;">S</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">s</span></span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.481108em;"><span></span></span></span></span></span><span class="mclose nulldelimiter"></span></span></span></span></span></p>
<p><span class="katex"><span class="katex-mathml"><math><semantics><mrow><mi>I</mi><mi>n</mi><mi>v</mi><mi>e</mi><mi>n</mi><mi>t</mi><mi>o</mi><mi>r</mi><mi>y</mi><mtext>  </mtext><mi>T</mi><mi>u</mi><mi>r</mi><mi>n</mi><mi>o</mi><mi>v</mi><mi>e</mi><mi>r</mi><mo>=</mo><mfrac><mrow><mi>C</mi><mi>o</mi><mi>s</mi><mi>t</mi><mtext>  </mtext><mi>o</mi><mi>f</mi><mtext>  </mtext><mi>G</mi><mi>o</mi><mi>o</mi><mi>d</mi><mi>s</mi><mtext>  </mtext><mi>S</mi><mi>o</mi><mi>l</mi><mi>d</mi></mrow><mrow><mi>A</mi><mi>v</mi><mi>e</mi><mi>r</mi><mi>a</mi><mi>g</mi><mi>e</mi><mtext>  </mtext><mi>I</mi><mi>n</mi><mi>v</mi><mi>e</mi><mi>n</mi><mi>t</mi><mi>o</mi><mi>r</mi><mi>y</mi><mtext>  </mtext><mi>V</mi><mi>a</mi><mi>l</mi><mi>u</mi><mi>e</mi></mrow></mfrac></mrow><annotation encoding="application/x-tex">Inventory\;Turnover= \frac{Cost\;of\;Goods\;Sold}{Average \; Inventory\; Value}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8777699999999999em;vertical-align:-0.19444em;"></span><span class="mord mathit" style="margin-right:0.07847em;">I</span><span class="mord mathit">n</span><span class="mord mathit" style="margin-right:0.03588em;">v</span><span class="mord mathit">e</span><span class="mord mathit">n</span><span class="mord mathit">t</span><span class="mord mathit">o</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mord mathit" style="margin-right:0.03588em;">y</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mord mathit" style="margin-right:0.13889em;">T</span><span class="mord mathit">u</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mord mathit">n</span><span class="mord mathit">o</span><span class="mord mathit" style="margin-right:0.03588em;">v</span><span class="mord mathit">e</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.4133239999999998em;vertical-align:-0.481108em;"></span><span class="mord"><span class="mopen nulldelimiter"></span><span class="mfrac"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.9322159999999999em;"><span style="top:-2.6550000000000002em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight">A</span><span class="mord mathit mtight" style="margin-right:0.03588em;">v</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight" style="margin-right:0.02778em;">r</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.03588em;">g</span><span class="mord mathit mtight">e</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.07847em;">I</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight" style="margin-right:0.03588em;">v</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight" style="margin-right:0.02778em;">r</span><span class="mord mathit mtight" style="margin-right:0.03588em;">y</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.22222em;">V</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">e</span></span></span></span><span style="top:-3.23em;"><span class="pstrut" style="height:3em;"></span><span class="frac-line" style="border-bottom-width:0.04em;"></span></span><span style="top:-3.446108em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.07153em;">C</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight">s</span><span class="mord mathit mtight">t</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight">o</span><span class="mord mathit mtight" style="margin-right:0.10764em;">f</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight">G</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight">d</span><span class="mord mathit mtight">s</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.05764em;">S</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mord mathit mtight">d</span></span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.481108em;"><span></span></span></span></span></span><span class="mclose nulldelimiter"></span></span></span></span></span></p>
<p><span class="katex"><span class="katex-mathml"><math><semantics><mrow><mi>A</mi><mi>s</mi><mi>s</mi><mi>e</mi><mi>t</mi><mtext>  </mtext><mi>T</mi><mi>u</mi><mi>r</mi><mi>n</mi><mi>o</mi><mi>v</mi><mi>e</mi><mi>r</mi><mo>=</mo><mfrac><mrow><mi>R</mi><mi>e</mi><mi>v</mi><mi>e</mi><mi>n</mi><mi>u</mi><mi>e</mi><mtext> </mtext><mo>(</mo><mi>o</mi><mi>r</mi><mtext>  </mtext><mi>s</mi><mi>a</mi><mi>l</mi><mi>e</mi><mi>s</mi><mo>)</mo></mrow><mrow><mi>T</mi><mi>o</mi><mi>t</mi><mi>a</mi><mi>l</mi><mtext>  </mtext><mi>A</mi><mi>s</mi><mi>s</mi><mi>e</mi><mi>t</mi><mi>s</mi></mrow></mfrac></mrow><annotation encoding="application/x-tex">Asset \; Turnover = \frac{Revenue\,(or\;sales)}{Total\;Assets}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.68333em;vertical-align:0em;"></span><span class="mord mathit">A</span><span class="mord mathit">s</span><span class="mord mathit">s</span><span class="mord mathit">e</span><span class="mord mathit">t</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mord mathit" style="margin-right:0.13889em;">T</span><span class="mord mathit">u</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mord mathit">n</span><span class="mord mathit">o</span><span class="mord mathit" style="margin-right:0.03588em;">v</span><span class="mord mathit">e</span><span class="mord mathit" style="margin-right:0.02778em;">r</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.355em;vertical-align:-0.345em;"></span><span class="mord"><span class="mopen nulldelimiter"></span><span class="mfrac"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:1.01em;"><span style="top:-2.6550000000000002em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.13889em;">T</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight">A</span><span class="mord mathit mtight">s</span><span class="mord mathit mtight">s</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">s</span></span></span></span><span style="top:-3.23em;"><span class="pstrut" style="height:3em;"></span><span class="frac-line" style="border-bottom-width:0.04em;"></span></span><span style="top:-3.485em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.00773em;">R</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight" style="margin-right:0.03588em;">v</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">e</span><span class="mspace mtight" style="margin-right:0.19516666666666668em;"></span><span class="mopen mtight">(</span><span class="mord mathit mtight">o</span><span class="mord mathit mtight" style="margin-right:0.02778em;">r</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight">s</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">s</span><span class="mclose mtight">)</span></span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.345em;"><span></span></span></span></span></span><span class="mclose nulldelimiter"></span></span></span></span></span></p>
<p><code>Quicker payments will reduce the average amount of accounts receivables, so the receivables turnover ratio will increase.</code></p>
<hr>
<h3>Chapter 2 Strategy, Products, and Capacity</h3>
<p>Productivity = <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mfrac><mrow><mi>O</mi><mi>u</mi><mi>t</mi><mi>p</mi><mi>u</mi><mi>t</mi><mi>s</mi></mrow><mrow><mi>i</mi><mi>n</mi><mi>p</mi><mi>u</mi><mi>t</mi><mi>s</mi></mrow></mfrac></mrow><annotation encoding="application/x-tex">\frac{Outputs}{inputs}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:1.4055469999999999em;vertical-align:-0.481108em;"></span><span class="mord"><span class="mopen nulldelimiter"></span><span class="mfrac"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.924439em;"><span style="top:-2.6550000000000002em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight">i</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">p</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">s</span></span></span></span><span style="top:-3.23em;"><span class="pstrut" style="height:3em;"></span><span class="frac-line" style="border-bottom-width:0.04em;"></span></span><span style="top:-3.446108em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.02778em;">O</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">p</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">s</span></span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.481108em;"><span></span></span></span></span></span><span class="mclose nulldelimiter"></span></span></span></span></span></p>
<p>Capacity Utilization Rate = <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mfrac><mrow><mi>U</mi><mi>n</mi><mi>i</mi><mi>t</mi><mi>s</mi><mtext>  </mtext><mi>o</mi><mi>f</mi><mtext>  </mtext><mi>O</mi><mi>u</mi><mi>t</mi><mi>p</mi><mi>u</mi><mi>t</mi></mrow><mrow><mi>P</mi><mi>e</mi><mi>a</mi><mi>k</mi><mtext> </mtext><mi>U</mi><mi>n</mi><mi>i</mi><mi>t</mi><mi>s</mi></mrow></mfrac></mrow><annotation encoding="application/x-tex">\frac{Units\;of\;Output}{Peak\:Units}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:1.277216em;vertical-align:-0.345em;"></span><span class="mord"><span class="mopen nulldelimiter"></span><span class="mfrac"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.9322159999999999em;"><span style="top:-2.6550000000000002em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.13889em;">P</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight" style="margin-right:0.03148em;">k</span><span class="mspace mtight" style="margin-right:0.26022222222222224em;"></span><span class="mord mathit mtight" style="margin-right:0.10903em;">U</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">i</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">s</span></span></span></span><span style="top:-3.23em;"><span class="pstrut" style="height:3em;"></span><span class="frac-line" style="border-bottom-width:0.04em;"></span></span><span style="top:-3.446108em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.10903em;">U</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight">i</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">s</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight">o</span><span class="mord mathit mtight" style="margin-right:0.10764em;">f</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.02778em;">O</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">p</span><span class="mord mathit mtight">u</span><span class="mord mathit mtight">t</span></span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.345em;"><span></span></span></span></span></span><span class="mclose nulldelimiter"></span></span></span></span></span></p>
<hr>
<h3>Chapter 4 Critical Path Method</h3>
<ul>
<li>Top left - Early Start</li>
<li>Top right - Early Finish</li>
<li>Bottom left - Late Start</li>
<li>Bottom right - Late Finish</li>
</ul>
<p>First propagate through the early starts. Once that is calculated, use back propagation to determine late start.</p>
<p><code>Late Start - Early Start = Slack Time</code></p>
<p><strong>Any path with 0 slack time is part of the critical path</strong></p>
<p><img src="cpm.png" alt="CPM"></p>
<hr>
<h3>Chapter 5 Strategic capacity management</h3>
<p><em>Capacity utilization rate</em> <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mo>=</mo><mfrac><mrow><mi>C</mi><mi>a</mi><mi>p</mi><mi>a</mi><mi>c</mi><mi>i</mi><mi>t</mi><mi>y</mi><mtext>  </mtext><mi>U</mi><mi>s</mi><mi>e</mi><mi>d</mi></mrow><mrow><mi>B</mi><mi>e</mi><mi>s</mi><mi>t</mi><mtext> </mtext><mi>O</mi><mi>p</mi><mi>e</mi><mi>r</mi><mi>a</mi><mi>t</mi><mi>i</mi><mi>n</mi><mi>g</mi><mtext> </mtext><mi>L</mi><mi>e</mi><mi>v</mi><mi>e</mi><mi>l</mi></mrow></mfrac></mrow><annotation encoding="application/x-tex">=\frac{Capacity\;Used}{Best\:Operating\:Level}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.36687em;vertical-align:0em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.4133239999999998em;vertical-align:-0.481108em;"></span><span class="mord"><span class="mopen nulldelimiter"></span><span class="mfrac"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.9322159999999999em;"><span style="top:-2.6550000000000002em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.05017em;">B</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">s</span><span class="mord mathit mtight">t</span><span class="mspace mtight" style="margin-right:0.26022222222222224em;"></span><span class="mord mathit mtight" style="margin-right:0.02778em;">O</span><span class="mord mathit mtight">p</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight" style="margin-right:0.02778em;">r</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight">i</span><span class="mord mathit mtight">n</span><span class="mord mathit mtight" style="margin-right:0.03588em;">g</span><span class="mspace mtight" style="margin-right:0.26022222222222224em;"></span><span class="mord mathit mtight">L</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight" style="margin-right:0.03588em;">v</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight" style="margin-right:0.01968em;">l</span></span></span></span><span style="top:-3.23em;"><span class="pstrut" style="height:3em;"></span><span class="frac-line" style="border-bottom-width:0.04em;"></span></span><span style="top:-3.446108em;"><span class="pstrut" style="height:3em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight"><span class="mord mathit mtight" style="margin-right:0.07153em;">C</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight">p</span><span class="mord mathit mtight">a</span><span class="mord mathit mtight">c</span><span class="mord mathit mtight">i</span><span class="mord mathit mtight">t</span><span class="mord mathit mtight" style="margin-right:0.03588em;">y</span><span class="mspace mtight" style="margin-right:0.3252777777777778em;"></span><span class="mord mathit mtight" style="margin-right:0.10903em;">U</span><span class="mord mathit mtight">s</span><span class="mord mathit mtight">e</span><span class="mord mathit mtight">d</span></span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.481108em;"><span></span></span></span></span></span><span class="mclose nulldelimiter"></span></span></span></span></span></p>
<h6>Capacity terms</h6>
<table>
<thead>
<tr>
<th>Term</th>
<th>Time Period</th>
</tr>
</thead>
<tbody>
<tr>
<td>Short</td>
<td>< 1 months</td>
</tr>
<tr>
<td>Medium</td>
<td>6 to 18 months</td>
</tr>
<tr>
<td>Long</td>
<td>>1 Year</td>
</tr>
</tbody>
</table>
<hr>
<h3>Chapter 10 Waiting Line Analysis and Simulation</h3>
<h4>Phases and Channels</h4>
<ul>
<li>Single channel, Single phase
<ul>
<li>Only one line, only one station</li>
<li><strong>Typical example is a single chair barbershop</strong></li>
</ul>
</li>
<li>Single channel, Multi phase
<ul>
<li>Only one line, multiple stations</li>
<li><strong>Typical example is a car wash</strong>
<ul>
<li>Users move through vacuums, wetting, washing, rinsing, ect.</li>
</ul>
</li>
</ul>
</li>
<li>Multichannel, single phase
<ul>
<li>Multiple lines to go through, but each station provides only a single stop</li>
<li><strong>Typical example is a bank teller</strong>
<ul>
<li>A bank has multiple tellers, but a customer will only visit a single teller</li>
</ul>
</li>
</ul>
</li>
<li>Multichannel, multiphase
<ul>
<li>Multiple lines for multiple services. Similar to a bank teller, except multiple stations.</li>
<li><strong>Typical example is a hospital admission.</strong>
<ul>
<li>User must go to triage, insurance, reception, ect. and multiple help desks exist</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><strong>Examples of working line problems start on page 231 of the textbook</strong></p>
<hr>
<h3>Chapter 12 Six Sigma</h3>
<h5>Methodology</h5>
<ol>
<li><strong>Define (D)</strong>
<ul>
<li>Identify customers and their priorities.</li>
<li>Identify a project suitable for Six Sigma efforts based on business objectives as well as customer needs and feedback.</li>
<li>Identify critical-to-quality characteristics (CTQs) that the customer believes have the most impact on quality.</li>
</ul>
</li>
<li><strong>Measure (M)</strong>
<ul>
<li>Determine how to measure the process and how it is performing.</li>
<li>Identify the key internal process that influence CTQs and measure the defects currently generated relative to those processes.</li>
</ul>
</li>
<li><strong>Analyze (A)</strong>
<ul>
<li>Determine the most likely causes of defects.</li>
<li>Understand why defects are generated by identifying the key variables most likely to create process variation.</li>
</ul>
</li>
<li><strong>Improve (I)</strong>
<ul>
<li>Identify means to remove the cause of defects</li>
<li>Confirm the key variables and quantify their effects on the CTQs.</li>
<li>Identify the maximum acceptance ranges of the key variables and a system for measuring deviations of the variables.</li>
<li>Modify the process to stay within an acceptable range.</li>
</ul>
</li>
<li><strong>Control (C)</strong>
<ul>
<li>Determine how to maintain the improvements</li>
<li>Put tools in place to ensure that the key variables remain within the maximum acceptance ranges under the modified process.</li>
</ul>
</li>
</ol>
<h5>Six sigma charts</h5>
<p>Chart examples are on page 305 of the textbook</p>
<ul>
<li>
<p>Flow Charts</p>
<ul>
<li>Used in the define stage of a product</li>
</ul>
</li>
<li>
<p>Run charts</p>
<ul>
<li>Depict trends over time and help in the define stage</li>
</ul>
</li>
<li>
<p>Pareto charts</p>
<ul>
<li>These charts help to break down a problem into the relative contributions of its components, based on the idea that 80% of problems are caused by 20% of causes</li>
</ul>
</li>
<li>
<p>Checksheets</p>
<ul>
<li>These are basic forms that help standardize data collections.</li>
</ul>
</li>
<li>
<p>Fishbone (aka Cause and Effect Diagram)</p>
<ul>
<li>To construct, start with a why? question. Why are pizza deliveries late on Friday and Saturday nights?</li>
<li>The rest consists of lines drawn across the page, attached to the problem statement, and several lines or "bones" coming out vertically from the main line.</li>
</ul>
<p>Fishbone diagram example</p>
</li>
</ul>
<p><img src="fishbone.gif" alt="Fishbone"></p>
<hr>
<h2>Chapter 13 Quality Control</h2>
<h5>P-charts</h5>
<h6>Used when a product is either good or it is bad</h6>
<p><img src="pbar.gif" alt=""></p>
<p>Standard deviation<br>
<img src="stdp.gif" alt=""><br>
UCL<br>
<img src="pucl.gif" alt=""><br>
LCL<br>
<img src="plcl.gif" alt=""><br>
<em>z</em> is confidence rating. A typical value is <img src="zet.gif" alt=""> (99.7% confidence) or <img src="zetw.gif" alt=""> (99% confidence)</p>
<hr>
<h5>C-charts</h5>
<h6>Used when the product can have multiple defects; such as a board of lumber with more than one knot</h6>
<p><img src="cbar.gif" alt=""> Average number of defects per unit<br>
Standard deviation<br>
<img src="cstd.gif" alt=""><br>
UCL<br>
UCL = <img src="cucl.gif" alt=""><br>
LCL<br>
LCL = <img src="clclm.gif" alt=""> or 0, whichever is greater</p>
<p>Same typical z values as p-charts</p>
<hr>
<h5>X-Bar and R-Charts</h5>
<h6>Used when taking samples that must fall within an acceptable range</h6>
<p><strong>See Page 329 of the textbook</strong></p>
<table>
<thead>
<tr>
<th>Number of observations in each sample</th>
<th><span class="katex"><span class="katex-mathml"><math><semantics><mrow><msub><mi>A</mi><mn>2</mn></msub></mrow><annotation encoding="application/x-tex">A_2</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.83333em;vertical-align:-0.15em;"></span><span class="mord"><span class="mord mathit">A</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:0em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">2</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span></span></span></span></th>
<th><span class="katex"><span class="katex-mathml"><math><semantics><mrow><msub><mi>D</mi><mn>3</mn></msub></mrow><annotation encoding="application/x-tex">D_3</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.83333em;vertical-align:-0.15em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.02778em;">D</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:-0.02778em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">3</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span></span></span></span></th>
<th><span class="katex"><span class="katex-mathml"><math><semantics><mrow><msub><mi>D</mi><mn>4</mn></msub></mrow><annotation encoding="application/x-tex">D_4</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.83333em;vertical-align:-0.15em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.02778em;">D</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:-0.02778em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">4</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span></span></span></span></th>
</tr>
</thead>
<tbody>
<tr>
<td>2</td>
<td>1.88</td>
<td>0</td>
<td>3.27</td>
</tr>
<tr>
<td>3</td>
<td>1.02</td>
<td>0</td>
<td>2.57</td>
</tr>
<tr>
<td>4</td>
<td>0.73</td>
<td>0</td>
<td>2.28</td>
</tr>
<tr>
<td>5</td>
<td>0.58</td>
<td>0</td>
<td>2.11</td>
</tr>
<tr>
<td>6</td>
<td>0.48</td>
<td>0</td>
<td>2.00</td>
</tr>
<tr>
<td>7</td>
<td>0.42</td>
<td>0.08</td>
<td>1.92</td>
</tr>
<tr>
<td>8</td>
<td>0.37</td>
<td>0.14</td>
<td>1.86</td>
</tr>
<tr>
<td>9</td>
<td>0.34</td>
<td>0.18</td>
<td>1.82</td>
</tr>
<tr>
<td>10</td>
<td>0.31</td>
<td>0.22</td>
<td>1.78</td>
</tr>
<tr>
<td>11</td>
<td>0.29</td>
<td>0.26</td>
<td>1.74</td>
</tr>
<tr>
<td>12</td>
<td>0.27</td>
<td>0.28</td>
<td>1.72</td>
</tr>
<tr>
<td>13</td>
<td>0.25</td>
<td>0.31</td>
<td>1.69</td>
</tr>
<tr>
<td>14</td>
<td>0.24</td>
<td>0.33</td>
<td>1.67</td>
</tr>
<tr>
<td>15</td>
<td>0.22</td>
<td>0.35</td>
<td>1.65</td>
</tr>
<tr>
<td>16</td>
<td>0.21</td>
<td>0.36</td>
<td>1.64</td>
</tr>
<tr>
<td>17</td>
<td>0.20</td>
<td>0.38</td>
<td>1.62</td>
</tr>
<tr>
<td>18</td>
<td>0.19</td>
<td>0.39</td>
<td>1.61</td>
</tr>
<tr>
<td>19</td>
<td>0.19</td>
<td>0.40</td>
<td>1.60</td>
</tr>
<tr>
<td>20</td>
<td>0.18</td>
<td>0.41</td>
<td>1.59</td>
</tr>
</tbody>
</table>
<p><strong>Upper control limit for</strong> <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mover accent="true"><mi>X</mi><mo stretchy="true">‾</mo></mover><mo>=</mo><mover accent="true"><mover accent="true"><mi>x</mi><mo stretchy="true">‾</mo></mover><mo stretchy="true">‾</mo></mover><mo>+</mo><msub><mi>A</mi><mn>2</mn></msub><mover accent="true"><mi>R</mi><mo stretchy="true">‾</mo></mover></mrow><annotation encoding="application/x-tex">\overline{X} = \overline{\overline{x}}+A_2\overline{R}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8833300000000001em;vertical-align:0em;"></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.07847em;">X</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:0.9138900000000001em;vertical-align:-0.08333em;"></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8305600000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.63056em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit">x</span></span></span><span style="top:-3.55056em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span></span></span><span style="top:-3.75056em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span><span class="mspace" style="margin-right:0.2222222222222222em;"></span><span class="mbin">+</span><span class="mspace" style="margin-right:0.2222222222222222em;"></span></span><span class="base"><span class="strut" style="height:1.03333em;vertical-align:-0.15em;"></span><span class="mord"><span class="mord mathit">A</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:0em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">2</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.00773em;">R</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span></span></span></span></p>
<p><strong>Lower control limit for</strong> <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mover accent="true"><mi>X</mi><mo stretchy="true">‾</mo></mover><mo>=</mo><mover accent="true"><mover accent="true"><mi>X</mi><mo stretchy="true">‾</mo></mover><mo stretchy="true">‾</mo></mover><mrow><msub><mi>A</mi><mn>2</mn></msub><mover accent="true"><mi>R</mi><mo stretchy="true">‾</mo></mover></mrow></mrow><annotation encoding="application/x-tex">\overline{X} = \overline{\overline{X}}{A_2\overline{R}}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.8833300000000001em;vertical-align:0em;"></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.07847em;">X</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.23333em;vertical-align:-0.15em;"></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:1.0833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.07847em;">X</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span></span></span><span style="top:-4.00333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span><span class="mord"><span class="mord"><span class="mord mathit">A</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:0em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">2</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.00773em;">R</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span></span></span></span></span></p>
<p><strong>Upper control limit for</strong> <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mi>R</mi><mo>=</mo><msub><mi>D</mi><mn>4</mn></msub><mover accent="true"><mi>R</mi><mo stretchy="true">‾</mo></mover></mrow><annotation encoding="application/x-tex">R = D_4 \overline{R}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.68333em;vertical-align:0em;"></span><span class="mord mathit" style="margin-right:0.00773em;">R</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.03333em;vertical-align:-0.15em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.02778em;">D</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:-0.02778em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">4</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.00773em;">R</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span></span></span></span></p>
<p><strong>Lower control limit for</strong> <span class="katex"><span class="katex-mathml"><math><semantics><mrow><mi>R</mi><mo>=</mo><msub><mi>D</mi><mn>3</mn></msub><mover accent="true"><mi>R</mi><mo stretchy="true">‾</mo></mover></mrow><annotation encoding="application/x-tex">R = D_3 \overline{R}</annotation></semantics></math></span><span class="katex-html" aria-hidden="true"><span class="base"><span class="strut" style="height:0.68333em;vertical-align:0em;"></span><span class="mord mathit" style="margin-right:0.00773em;">R</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span><span class="mrel">=</span><span class="mspace" style="margin-right:0.2777777777777778em;"></span></span><span class="base"><span class="strut" style="height:1.03333em;vertical-align:-0.15em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.02778em;">D</span><span class="msupsub"><span class="vlist-t vlist-t2"><span class="vlist-r"><span class="vlist" style="height:0.30110799999999993em;"><span style="top:-2.5500000000000003em;margin-left:-0.02778em;margin-right:0.05em;"><span class="pstrut" style="height:2.7em;"></span><span class="sizing reset-size6 size3 mtight"><span class="mord mtight">3</span></span></span></span><span class="vlist-s">​</span></span><span class="vlist-r"><span class="vlist" style="height:0.15em;"><span></span></span></span></span></span></span><span class="mord overline"><span class="vlist-t"><span class="vlist-r"><span class="vlist" style="height:0.8833300000000001em;"><span style="top:-3em;"><span class="pstrut" style="height:3em;"></span><span class="mord"><span class="mord mathit" style="margin-right:0.00773em;">R</span></span></span><span style="top:-3.80333em;"><span class="pstrut" style="height:3em;"></span><span class="overline-line" style="border-bottom-width:0.04em;"></span></span></span></span></span></span></span></span></span></p>
<hr>
<h2>Chapter 19 Sales and Operations Planning</h2>
<h6>Production Planning Strategies</h6>
<ol>
<li><strong>Chase Strategy.</strong> Match the production rate to the order rate by hiring and laying off employees as the order rate varies.</li>
<li><strong>Stable workforce -- variable work hours.</strong> Vary the output by varying the number of hours worked through flexible schedule or over-time,</li>
<li><strong>Level strategy.</strong> Maintain a stable workforce working at a constant output.</li>
</ol>
<hr>
<h2>Chapter 23 Theory of Constraints</h2>
<p>Eli Goldratt in his book <em>The Goal</em> observed that improving flow time through a resource that was not a bottleneck would not improve over all production time.</p>
<p>Goldratt's Rules of Production Scheduling</p>
<ol>
<li>Do not balance capacity - balance the flow</li>
<li>The level of utilization of a nonbottleneck resource is determined not by its own potential but by some other constraint in the system.</li>
<li>Utilization and activation of a resource are not the same.</li>
<li>An hour lost at a bottleneck is an hour lost for the entire system</li>
<li>An hour saved at a nonbottleneck is a mirage.</li>
<li>Bottlenecks govern both throughput and inventory in the system.</li>
<li>The transfer batch may not, and many times should not, be equal to the process batch.</li>
<li>A process batch should be variable both along its route and in time.</li>
<li>Priorities can be set only by examining the system's constraints. Lead time is a derivative of the schedule.</li>
</ol>
</div>
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